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A US firm, Tesla, made a 1,000,000 sale to Germany in September 2020 and...

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Finance

A US firm, Tesla, made a 1,000,000 sale to Germany in September 2020 and will be paid in three months - in December 2020. Now, spot exchange rate is /$ 1.15 and the three-month forward rate is /$ 1.18.

What is the forward proceeds in December 2020 if Tesla chooses forward hedge (forward contract) for hedging?

$ 1,150,000

$ 1,180,000

$ 1,120,000

$ 1,130,000

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