1) Sell Or Buy

2) $245,100.00 Or $343,140.00 Or $294,120.00 Or $318,630.00

1. 2. 3. STEP 2 of 3 Suppose that you are a finance manager at a U.S. based MNC. On January 1st, you anticipate you will need to purchase C$430,000.00 (Canadian dollars) worth of supplies from a Canadian supplier in March using Canadian dollars (CS). The current spot rate for the Canadian dollar is $0.58. Suppose that on February 10th, you find out your MNC no longer needs the order of Canadian supplies and, thus, does not need Canadian dollars. Therefore, you wish to close out your futures position In order to close out your futures position in Canadian dollars, you would a futures contract specifying a C$430,000.00 with a settlement date of March 10th. If the futures contracts for Canadian dollars are priced at $0.57, then your MNC would receive on the settlement date from that contract in exchange for C$430,000.00