You are a USA importer of pharmaceutical goods and have agreed on a contract on January 1 2022 to purchase Euro 4,500,000 goods from France for delivery in 270 days and wish to protect your exchange rate for the of Euros cost through a forward exchange contract with your bank. Using the following data answer the undermentioned questions(a-c). Pick the correct Spot Rate for the transaction from the banks perspective.

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Amount Euros 4,500,000.00

Delivery Days 270

Jan 2022 Spot rate Bid (Buy) 0.6690 Offer (Sell) 0.6686 (Non inverted)

Interest Rate USA 3.0% per annum

Interest Rate France 5.00% per annum

1. Calculate the forward exchange rate
2. Calculate the USA$ amount
3. Explain what would happen to the forward exchange contract and why, if delivery of goods is delayed