You Enter into a Forward Contract to Take Delivery of 1

You enter into a forward contract to take delivery of 1 million euros 3 months from now.What happens to the price you will pay at expiration if the euro depreciates during the contract period?

A) Your price will increase.
B) Your price will decrease.
C) Your price was fixed at the onset of the contract.
D) Your price was fixed but you will receive correspondingly more euros due to the depreciation.

Correct Answer:

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