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5.) An American individual recently responded to the following listing. She has just signed a contract and made a downpayment. GOLD LISTING 24 Luxurious

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5.) An American individual recently responded to the following listing. She has just signed a contract and made a downpayment. GOLD LISTING 24 Luxurious Condo Mount-Royal, Montreal, Quebec 2 Beds 2 Baths 2,296 Sqft CAMELIA FATHI Camelia Fathi Realtor Condominium $2,754,600 CAD View Details The transaction will close in 30 days, at which point she will want to move the necessary funds as shown in the following diagram. CANADIAN SELLER Canadian dollars (CAD) US dollars (USD) Buyer's BUYER Bank Account How might a change in exchange rates jeopardize her ability to carry out this transaction? How could she eliminate this risk using a forward contract? What currency would she want to sell forward?

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