On August 1st, Tiffany Co. ordered raw material from France and agreed to pay 100 million euros for this order on November 1st. It negotiated a 3-month forward contract to obtain 100 million euros on that date at $1.25 per euro. On September 1st, the French firm informed Tiffany Co. that it won't be able to fulfill that order. The euro spot rate on September 1st is $1.26 and 2-month forward rate exhibits a 2% discount. To offset its existing contract, Tiffany Co. will negotiate a forward contract to for the date of November 1st and the profit/loss generated from this transaction is a U.S. dollars. Buy euro; loss of $1,520,000 Buy euro; gain of $1,520,000. Sell euro; gain of $1,520,000. Sell euro; loss of $1,520,000