Sammy has an import business where he buys olives from Greece and resells them in the U.S. He has negotiated with his Greek supplier for a price of 16 Euros per bottle. Sammy resells them in the U.S. at $18.00 a bottle. Sammy buys and sells 2,000 bottles of olives..

If Sammy wanted to use a forward contract to hedge his exchange rate risk for the month, how many Euros would he need?

	A.	10,000
	B.	20,000
	C.	32,000
	D.	It depends on the exchange rate

Using the assumptions about Sammy's import business from the above information , what would Sammy's profit margin be if the exchange rate was 1.1533 USD per Euro and Sammy had a forward contract for all the Euros he needs at an exchange rate of .9966 USD per Euro?

	A.	-2.52%
	B.	5.13%
	C.	8.06%
	D.	11.41%