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Exxon Oil Corp. is negotiating the purchase of 1 million barrels of oil from a bankrupt competitor to be delivered and paid for in exactly
Exxon Oil Corp. is negotiating the purchase of million barrels of oil from a bankrupt competitor to be delivered and paid for in exactly year. The oil exporter wants the contract expressed in Mexican Pesos, and the current in USD" Peso
exchange rate is $ The contract is signed at a price of Pesos per barrel. Exxon can enter a futures contract that allows the company to purchase Pesos at the exact time of oil delivery at $ If we consider the use of the futures
contract to hedge Exxon's foreign exchange risk, how much is the cost of this insurance, in US dollars, to Exxon?
$
Round your answer to the closest SUSD. Do not include a dollar sign or a comma in your answer. For example, an answer of one million four hundred and ten thousand would be entered as
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