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You have to buy 145,000 in 90 days and the 90 day forward rate is $1.20. You go long one euro contract for 125,000 at
You have to buy 145,000 in 90 days and the 90 day forward rate is $1.20. You go long one euro contract for 125,000 at the $1.20 rate. After 90 days the actual spot rate is $1.13 and you buy the 145,000 euros. Including your gain or loss on the futures contract what is your net total cost for the 145,000 euros and what is the cost per euro?
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