Question: Cray Research ( a U . S firm ) purchased a super computer from the Max Planck Institute in Germany on credit and invoiced 1
Cray Research a US firm purchased a super computer from the Max Planck Institute in Germany on credit and invoiced payable in six months. Currently, the sixmonth forward exchange rate is $ and the foreign exchange advisor for Cray Research predicts that the spot rate is likely to be $ in six months.
a What is the expected gainloss from the forward hedging? measured in $ and round your answer to zero decimal, eg $ When you enter a positive number, it is a profit. If you enter a negative number, it means a loss.
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