Garret's grapefruit company sold a ship full of grapefruit to a citrus corp in France on credit and sent an invoice for 12.30 euros payable in 6 months. Currently the 6 months forward exchange rate is $1.32/eu, the foreign exchange advisor for Garret's grapefruit company predicts the expected spot rate to be $1.17/eu in 6 months.

a.) What is the expected gain/loss from a forward hedge?

b.) A foreign exchanger's business partner thinks it will be the same as the current forward rate. If that is the case should you enter the forward hedge or not, why?

c.) suppose a future expected spot rate changes and is now predicted to be $1.33/eu in 6 months. Would you or would you not enter into a forward hedge in that case, why?