A customer of the bank - medium sized corporation whose domestic currency is the euro - has an ongoing obligation to make substantial monthly payments to a supplier in US dollars. The customer has requested a full explanation of how a Target Redemption Forward (TRF) might be suitable as a way of providing mitigation from foreign exchange risk. In particular the customer would like you to provide an actual illustration of the mechanics of the TRF structure itself, an explanation of the timing of cash flows and disclosure of the residual risks that may be incurred. Prepare a detailed proposal for the customer in such a way that the customer is fully informed of the benefits and risks of using a TRF. Also, but not part of the proposal to the customer, explain the manner in which the arrangement can be commercially feasible and rewarding from the bank's perspective.