In July $2015$ an insurance company entered a long position in a EURUSD$9$M$=$ FX forward

contract at a forward price of $1\mathrm{.}204US\frac{D}{E}UR$ with a notional principal of $30$m EUR. Three

months later the CEO asks you what the profit or loss would be when the position would be

closed today.

Provide the cash flows and maturities of the FX forward contract.

Provide the cash flows and maturities of the portfolio that exactly closes the position.

Answer the question of the CEO.

The CFO believes that the EUR Deposit rates will increase soon. Given this believe should

the insurance company close the position now or wait?