Question: 15 points Save Answer Matt Co. forecasted on December 1, 2019 to buy a machine from a company in Italy. The cost was 700,000 euros,

15 points Save Answer Matt Co. forecasted on December 1, 2019 to buy a machine from a company in Italy. The cost was 700,000 euros, to be paid on March 1, 2020. To hedge against fluctuations in the exchange rates, Matt entered into a forward contract on Dec. 1, 2019 to buy 700,000 euros on March 1, 2020, the agreed date of machine delivery and payment, for $1.18 per euro. The company ends its fiscal year on December 31. The following exchange rates were quoted: Dats 12/1/2019 12/31/2019 3/1/2020 Spot Rate 1.17 1.21 1.15 (Delivery on 3/1/2020) 1.18 1.20 w Notes: Read carefully and follow strictly so that Bb can grade you correctly! 1. Use comma in numbers, one thousand is 1,000, not 1000. Round to the nearest dallarme

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