Your company expects to receive CAD 1,200,000 in 90 days. The 90 day forward rate for CAD is $0.80 and the current spot rate is $0.75. If you use a forward hedge, estimate the cost of hedging the receivable if, 90 days later, the spot rate for CAD 90 days later turns out to be $0.82.
a. $50,000
b. $50,000
c. $75,000
d. $75,000
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Your company expects to receive CAD 1,200,000 in 90 days. The 90 day forward rate for CAD is $0.80 a...
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