Example: A company anticipates that a long-term customer will require delivery of 1,000,000 euros of goods on March 1, 2022, so they decide to hedge the risk associated with this forecasted transaction by entering into a forward contract on Dec 1, 2021 at a rate of 0.905. Relevant rates and fair values are as follows:

		Forward contract
Date	Forward rate to 3/1/22	Fair value	Change in fair value
12/1/21	$0.905	-0-	--
12/31/21	0.916	$(10,783)	-$10,783
3/1/22	0.900 (spot)	5,000	+$15,783

a)Entries on 12/1/21:?

b)Entries on 12/31/21:?

c)Entries on 3/1/22:?