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Business, 06.07.2019 02:20 chrisraptorofficial

Napril 1, quality corporation, a u. s. company, expects to sell merchandise to a french customer in three months, denominating the transaction in euros. on april 1, the spot rate is $1.41 per euro, and quality enters into a three-month forward contract cash flow hedge to sell 400,000 euros at a rate of $1.36. at the end of three months, the spot rate is $1.37 per euro, and quality delivers the merchandise, collecting 400,000 euros. what are the effects on net income from these transactions?

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