Currency Forward Contract Impact Calculation

Consider the following scenario: A US-based multinational corporation, XYZ Inc., expects to receive a payment of €10 million in six months for services rendered. To hedge against potential euro depreciation, XYZ Inc. decides to enter into a currency forward contract to lock in the current exchange rate. The current spot exchange rate is 1.15 USD/EUR, and the six-month forward rate, based on no-arbitrage conditions and interest rate parity, is 1.14 USD/EUR.

After six months, the actual spot exchange rate is 1.10 USD/EUR. Calculate the monetary impact of the forward contract for XYZ Inc. compared to receiving the payment in euros and converting it at the spot rate.