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You are a multinational company headquartered in the United States. Your plan involves importing goods from Europe in 6 months, necessitating 5 0 0 ,
You are a multinational company headquartered in the United States. Your plan involves importing goods from Europe in months, necessitating Euros. Concerned about potential exchange rate fluctuations between the US dollar USD and the euro EUR you intend to hedge your forex risk by employing futures contracts. Each forex futures contract corresponds to The current spot exchange rate stands at EUR USD, while the futures price for a month contract is set at EUR USD. Given that the futures price after months becomes EUR USD, and the spot exchange rate at that time is EUR USD, compute the effective price in USD of each Euro.
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