Cray Research (a U.S firm) sold a super computer to the Max Planck Institute in...
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Accounting
Cray Research (a U.S firm) sold a super computer to the Max Planck Institute in Germany on credit and invoiced 10,000,000 payable in six months. Currently, the six-month forward exchange rate is $1.26/ and the foreign exchange advisor for Cray Research predicts that the spot rate is likely to be $1.148/ in six months.
(a) What is the expected gain/loss from the forward hedging? (measured in $, and round your answer to zero decimal, e.g., $56,699). When you enter a positive number, it is a profit. If you enter a negative number, it means a loss.
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