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3 months ago, you bought €2,000,000 1-year forward at the forward rate of 1.23 $/€. If current 9-month interest rates are 7% p.a. in the U.S. and 4% p.a. in the Eurozone, and the current spot exchange rate for euros is 1.18 $/€, then how much is your forward contract worth right now? If the forward contract were terminated today, would you expect to have to pay or receive this amount?

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