You owe 100,000 Euro in one year. A one-year futures on the Euro settles at $1.20 today. You decide to hedge with this contact. The following table allows you to calculate the value of your futures position, the value of your physical position, and the total portfolio value on the maturity day, depending on the exchange rate at that time. What is the total portfolio value? Hint: it should not depend on the maturity day exchange rate.

Value of your position in the futures Value of your physical position in Euro TOTAL PORTFOLIO VALUE Maturity Day Exchange Rate, S$ per Euro $1.00 $1.20 $1.40