Boisjoly Watch Imports has agreed to purchase 15,000 Swiss watches for 1 million francs at today's spot rate. The firm's financial manager, James Desreumaux, has noted the following current spot and forward rates:                       U.S. Dollar / Franc Franc / U.S. Dollar           Spot   1.6590 0.6028   30-day forward   1.6540 0.6046   90-day forward   1.6460 0.6075   180-day forward   1.6400 0.6098                   On the same day, Desreumaux agrees to purchase 15,000 more watches in 3 months at the same price of 1 million francs.                 What is the cost of the watches, in U.S. dollars, if purchased at today's spot rate?

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Exchange Rate Risk

It is the possibility that the value of a currency will fluctuate in the future. In the wake of globalization, business establishments have increasingly ventured into international markets. The volume of international trade has prospered excellently in the near past and is expected to be more affluent in the future. The use of exchange-traded derivative financial instruments has been multi-folded to provide for the requirements of various MNCs and offshore potential investors. Most banks and financial institutions have helped integrate the global economies. Our Government has introduced some bold and extreme measures to fulfil the purpose behind the fiscal, industrial, and monetary policies. The enactment of GST is a huge step towards streamlining the taxation system of the country. Owing to Covid-19, this aspect of corporate risk management has become critical.