Question chic clothing inc has imported euro1000000 worth, Ask an Expert

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Question: Chic Clothing Inc. has imported €1,000,000 worth of dress shirts from France. The payment is due in 3 month time. The currents spot rate is $1.05/€. The three month forward rate is $1.055/€. If they hedge their accounts payable in the forward market, and the spot rate at that time is $1.049/€, how much will they end up paying?

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