On January 1st, Nucor Co. ordered raw material from Sweden and agreed to pay 280 million Swedish krona for this order on May 1st. It negotiated a 4-month forward contract to obtain 280 million Swedish krona on that date at $0.098 per Swedish krona. On March 1st, the Swedish firm informed Nucor Co. that it won't be able to fulfill that order. The Swedish krona spot rate on March 1st is $0.102 and 2-month forward rate exhibits a 5.75% discount. To offset its existing contract, Nucor Co. will negotiate a forward contract to for the date of May 1 st and the profit/loss generated from this transaction is a U.S. dollars. Buy Swedish krona; gain of 522,200. Buy Swedish krona; loss of 1,120,000. Sell Swedish krona; loss of 522,200. Sell Swedish krona; gain of 1,120,000