1. Suppose an importer, who expects to receive his shipment of raw materials worth 15,000 in three months, enters into a forward contract where E_/$ is 0.80. If at the time of delivery of the raw materials E_/$ = 0.83, how much does the trader benefit/lose by entering into the forward contract?
   1. He/she loses by $677.71
   2. He/she gains by $677.71
   3. He/she gains by $450
   4. He/she loses by $450
   5. He/she loses by $227.71

ANSWER: He/she gains by $450.

Please explain how this answer is achieved.