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( 1 2 points ) A company expects to receive C $ 1 , 2 0 0 , 0 0 0 in one year. Furthermore,

(12 points) A company expects to receive C$1,200,000 in one year. Furthermore, the company also expects to pay C $400,000 at the same date. The existing spot rate of the Canadian dollar ) is $.80C$, and the 1 year forward rate is $.81C$.
One-year call options on Canadian dollars are available, with an exercise price of $.82/C$ and a premium of $.03 per unit. One-year put options on Canadian dollars are available, with an exercise price of $.83C$ and a premium of $.04 per unit. Assume the following money market rates:
\table[[,U.S.,Canada],[Deposit rate,6%,5%
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