Go back to the $1$ July information given above. This time we will hedge against exchange rate movements to lock$-$in the AUD cost of the EUR $10,000$ payment to be made in one year's time. A forward contract for delivery of EUR $10,000$ in one year's time is quoted at $0\mathrm{.}6030.$

e$)$ To hedge against exchange rate movements, will you take a long or short forward position? That is$,$ will you buy or sell EUR forward?

f$)$ Assume that the spot exchange rate in one year's time is $0\mathrm{.}6500.$ Calculate $($i$)$ the gain$/$loss on the forward contract, $($ii$)$ the AUD cost of buying EUR $10,000$ at that time, and $($iii$)$ the net of these two amounts.

i$)$

g$)$ Ignore f$).$ Assume that the spot exchange rate in one year's time is $0\mathrm{.}5700.$ Calculate $($i$)$ the gain$/$loss on the forward contract, $($ii$)$ the AUD cost of buying EUR $10,000$ at that time, and $($iii$)$ the net of these two amounts.