Queen City Enterprises wants to be sure it has 10,000 cases of Pinot Nior to sell next December.In February, they enter into an agreement to buy the wine at a price of 34.62 euros to the case.Payment will be due at the end of December.They expect to sell the wine to restaurants and retailers for $63 per case.Queen City has hedged its foreign exchange risk by entering into a forward contract to purchase euros in December at $1.30/euro.If the spot exchange rate at the end of December is $1.35/euro, Queen City's gross profit will be

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The Answer of Queen City Enterprises wants to be sure it has 10,000 cases of Pinot Nior to sell next December.In February, they enter into an agreement to buy the wine at a price of 34.62 euros to the case.Payment will be due at the end of December.They expect to sell the wine to restaurants and retailers for $63 per case.Queen City has hedged its foreign exchange risk by entering into a forward contract to purchase euros in December at $1.30/euro.If the spot exchange rate at the end of December is $1.35/euro, Queen City's gross profit will be

Queen City Enterprises Wants to Be Sure It Has 10,000