On January 1st, Taiyun, the MD of BaiYun Co. passed the ordered to purchase raw material from Japan and agreed to pay 100 million yen for this order on April 1st. She acted upon the advice of her partners Lili, Martena, Maryam and Tency and negotiated a 3-month forward contract to obtain 100 million Japanese yen on that date at $.009. On February 1st, the Japanese firm informed Taiyun that it won't be able to fulfill that order. The Japanese yen spot rate on February 1st is $.0087 and 2-month forward rate exhibits 3% discount. Taiyun is disturbed to hear this news and called an emergency meeting to cope the situation. Her main concern is to offset the forward contract. The team hired Camila and Veronica to tell BaiYun co. what to do. The two experts stated in their suggestion that to offset its existing contract BaiYun will negotiate a forward contract to sell yen for the date of April 1st. But to calculate the profit/loss generated from this transaction in U.S. dollars the two expert gave this task to their classmate who promised to provide the best solution.