In 2014, Germany’s Volkswagen (VW) makes a contract with Malaysia to supply 100 cars in 2015. €700,000 is to be paid on the date of supply. Suppose today’s rate is Malaysian ringgit (MYR) 3/€ and the...

In 2014, Germany’s Volkswagen (VW) makes a contract with Malaysia to supply 100 cars in 2015. €700,000 is to be paid on the date of supply. Suppose today’s rate is Malaysian ringgit (MYR) 3/€ and the expected exchange rate for next year is MYR 3.15/€. Suppose after the deal, the rate changed to MYR3.10/€. In this case, what will happen to VW’s expected gain and loss in bonus in 2015?