Question: What are the expected U.S. dollars Exelon ends up receiving for its 700,000 euro receivable based on its exchange rate forecasting given below? Scenario Spot

What are the expected U.S. dollars Exelon ends up receiving for its 700,000 euro receivable based on its exchange rate forecasting given below?

Scenario Spot Exchange Rate One Year Later Probability 1 $1.0600 45% 2 $1.0700 30% 3 $1.1400 25%

$765,100.00.

$730,100.00.

$784,000.00.

$749,000.00.

Exelon uses forward contract to hedge 700,000 euro receivable. Suppose one year later, the euro spot exchange rate is $1.0700. What is Exelon's real cost of hedging?

-$2,100.00.

-$3,000.00.

$44,100.00.

$3,000.00.

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