Stulz, René M. (contributor) - 2004 - [Elektronische Ressource]
.S. exporter who expects to receive €100
million in six months. Suppose that the price of the euro is $1.20 now. If the price of … the
euro falls by 10 percent over the next six months, the exporter loses $12 million. By
selling euros forward, the … a forward contract, the risk is the euro, the exposure is €100
million in six months, and the exposure to the euro is …