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Suppose a U.S. importer purchases an Italian product today but will not pay for it for 60 days. The cost of the product today is
Suppose a U.S. importer purchases an Italian product today but will not pay for it for 60 days. The cost of the product today is 65,000 euros. The spot exchange rate today is 0.7243 euros per dollar. The importer creates a forward-market hedge. The 60-day forward rate is 0.7100 euros per dollar. The amount the U.S. importer will pay in 60 days is..?
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