The treasurer of a large Belgian industrial firm wants to hedge an expected incoming cashflow of USD 1,100,000, which will be occurring 1 year from now. The treasurer receives a quote from an American bank for a 1-year forward contract at 1.2015 / 1.2020 USD per EUR. The treasurer then runs several scenarios comparing the financial impact of hedging the exposure to remaining unhedged and converting the cashflow at the prevailing spot exchange rate 1 year from now. Assuming no transaction costs, if the final exchange rate 1 year from now is quoted at 1.2115 / 1.2118, what is the best estimate of the net benefit to the firm from hedging the exposure? | Financial Risk Manager Part 1 Quiz - LeetQuiz