Your company has a $1$ million Euro receivable in one year. You decided to fully hedge with forward contracts.

The one year forward rate is $1\mathrm{.}22$ USD$/$EUR$.$

How much will you receive in USD in one year?

Note: provide your answers with four decimal points and in millions of USD. Please do the calculations in Excel and round up the results to four decimal points only at the end, once the calculations are completed.

Question $3$ 

Your company will receive $1$ million South African Rand $($ZAR$)$ in $3$ months. You decided to fully hedge with forward contracts.

The $3-$month forward rate is $15$ ZAR$/$USD$.$

How much will you receive in USD in three months?

Note: provide your answers with four decimal points and in millions of USD. Please do the calculations in Excel and round up the results to four decimal points only at the end, once the calculations are completed.

Answer rating: 100% (QA)

To calculate the amount you will receive in USD you need to multiply the amount in the ... View the full answer