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You are to receive 985,000 in February and wish to hedge your exchange rate risk. You choose to use the futures market for your hedge.

You are to receive 985,000 in February and wish to hedge your exchange rate risk. You choose to use the futures market for your hedge. A March contract for 125,000 has an exchange rate of $1.15/. You will use the number of contracts that give you the closest hedge. When you receive the euros in August the exchange rate is $1.18/. After settling the cash and closing the futures contract what is the net dollar price per euro you received?

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