Consider Problem 11.3. The owner often has Canadian visitors that prefer to pay in Canadian dollars. Her intuition tells her that the Canadian dollar will close above the $1.10/C$ 6-

month forward price. She buys C$20,000 six months forward at this price. Repeat parts

(a) through

(c) of Problem 11.3 for this transaction. In what ways is this position different from the underlying exposure and hedge in Problem 11.3?