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Your firm, Cheesis Fin Inc., is a British manufacturer of fine Stilton cheese. You believe you can sell your product effectively in France. You have

Your firm, Cheesis Fin Inc., is a British manufacturer of fine Stilton cheese. You believe you can sell your product effectively in France. You have recently agreed to sell a large container of cheese for 40,000 euros in six months' time. The spot rate of exchange between euros and pounds is 1.6 euros/pound. The forward rate for a transaction in six months is 1.55 euros/pound.

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