Lakewood Products, Inc. just bought €2,650,000 in products from a French supplier with payment due in 30 days. The spot exchange rate today is $1.2300/€ and the 30-day forward rate is $1.2310/€. If Lakewood decides to hedge the transaction, they will have to book a ______ of _______ at the end of 30 days.
A) Gain; $1,750
B) Loss; $2,650
C) Loss; $1,750
D) Gain; $2,650
E) None of the above.
Correct Answer:
Verified
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