The receivable is 10 million Euro to be recieved in 90 days. 90 Days forward rate is 1.45 US/EURO What is the process from a forward contract if hedged?
you sell the forward contract of 10 million euro @ 1.45, correct?
you will be long euro portfolio in 90 days so short currency forward at 1.45 US/ euro or 1.45 DC/FC
The exchange rate in this question shall be 1.45 EURO/US ! It’s an error.