Question

1. (2 pts) Today is October 1, Graylon, Inc., based in Washington, exports products to a German firm and will receive payment of €2,000,000 in two months. On October 1, the spot rate of the euro was $1.12, and the 2-month forward rate was $1.13. On October 1, Graylon negotiated a forward contract with a bank to sell€2,000,000 forward in two months. If the spot rate of the euro on Dec.1 is $1.15. Graylon will receive $ _________ for the euros on Dec. 1. A) 2,000,000 B) 2,240,000 C) 2,260,000 D) 2,300,000

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