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Today: Disney wants to hedge a payable of 1,750,000 EUR in 6 months using a EUR/USD forward contract. The bid rate is 1.144934 and the

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Today: Disney wants to hedge a payable of 1,750,000 EUR in 6 months using a EUR/USD forward contract. The bid rate is 1.144934 and the ask rate of 1.145222. Assuming they proceed with the forward contract, what is their payable if the spot rate at the time it is converted is 1.14860 ? Dieney must pay 2,004,138.50 USD to purchase 1,750,000 EUR needed for its bills Disney must pay 2,010,050 USD to purchase 1,750,000 EUR needed for its bills Disney must pay 1,750,000 USD to purchase 2,004,138.50 EUR needed for its bills Disney must pay 2,010,050 EUR to purchase 1,750,000 USD needed for its bills

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