In Jan 2020, Europe nations showed economic slowdown and the US corporations afraid the depreciating pressure on their EURO receivable. Onecorporate customer comes to the bank that you work for to hedge the 1.5 Million receivable due in 9 months. The following information shows up on your screen:

Spot exchange rate: $1.1013/ - $1.1023/

US interest rates are 1.75% for investing and 4.49% for borrowing.

EU interest rates are 0.5% for investing and 2.89% for borrowing.

Please remember: Interest rates are quoted as annualized rate.

The bank that you work for demands a 0.75% profit margin for all forward contract. How much is the forward quotation that you will provide to your corporate customer.