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14. Your firm will be importing a large order of its inputs from the United States in six months and is concerned that the Canadian

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14. Your firm will be importing a large order of its inputs from the United States in six months and is concerned that the Canadian dollar might fall against the U.S. dollar over that time. To hedge your risk, you decide to enter into a currency forward contract to purchase 500,000 USD at a rate of 1.0232 CAD/USD. If the spot exchange rate in six months' time ends up being 0.9967 CAD/USD, what is your gain or loss from hedging compared to remaining unhedged

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