11.2 Your rich uncle in France has decided to give you an annuity of 2,000 per month. Because you live in Canada, youre concerned about the effect of foreign currency fluctuations on your new income. You heard a finance guy on the radio talking about how foreign currency exchange rate could move against you, if youre not properly prepared. (6 marks)

a. What does it mean for the currency exchange rate to move against you?

b. Would moving to France mitigate some of the risk? If so, how? If not, why not?

c. Assume you want to stay in Canada. Your grandparents, who have retired to Provence (France), each receive a Canadian pension of C$1100 monthly. What could you do to reduce the risk for all of you?