Question: We'R'SlightlyNervous, a US-based MNC, will need 500,000 a year from now, and decides to lock into a rate of 2.00$/ and purchase a forward contract

We'R'SlightlyNervous, a US-based MNC, will need 500,000 a year from now, and decides to lock into a rate of 2.00$/ and purchase a forward contract right now. A year later, at the time when the delivery on the forward contract is made, the spot exchange rate turns out to be 1.90$/. The company, by purchasing the forward contract instead of waiting to buy the at the spot rate, (saved/lost) $ O Neither saved nor lost Lost $25.000 Saved $25,000 Lost $50,000 "O Saved $100,000 Lost $75,000 Lost $100,000 Saved $50,000 Saved $75,000

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