An exporter of widgets enters into a contract to provide 100,000 widgets at USD3 each in December.
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Question:
An exporter of widgets enters into a contract to provide 100,000 widgets at USD3 each in December. The exporter uses a forward foreign exchange contract to hedge the transaction risk.
AUD/USD spot rate is 0.9000
The December outright 3-month forward quote is - 0.8910/15
What is the AUD amount that the exporter will receive in December (rounded to the nearest dollar)?
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