Your company can close a deal of USD $300\mathrm{.}000,-$ with a Latin$-$American customer.

$$The cost of the goods is Euros $210\mathrm{.}000,-$

$$The currency exchange rate on the day of closing the contract is $1=1,0997$ USD.

$$Payment terms are $120$ days date of invoice $($which is the day after closing the contract as you have the goods on stock$).$

$$Date of the invoice is $01\mathrm{.}08\mathrm{.}2018.$

$$Your bank gives you $2$ alternatives:

$$Export Currency Exchange Insurance with expiration date $15\mathrm{.}12\mathrm{.}2018(15$ days are added to the date of receipt of the last bank transfer to cover the risk of possible delays$).$ The insurance quote is $1=1,1271$ USD. The commission for the constitution of the mentioned currency exchange rate insurance amounts to $0\mathrm{.}20\%$ of the amount insured in euros.

$$Currency option that allows you to sell USD dollars to your bank at a price of $1$ EUR $=1,1170$ USD. This option has a cost for the company of $2\mathrm{.}980$ euros.

Analyse the two alternatives proposed by calculating the margin of the operation $($amount received in euros minus the cost of the products$).$ Which one is

more favourable?

Needs to be solved using Excel