$AB\text{'}$s year$-$end is on December $31.$

On October $1,$ year $2$ when the U$.$S$.$ dollar was worth CDN $$1\mathrm{.}3,$ AB sell machinery to an American client for US $$337980.$ Full payment of this invoice was expected by March $1,$ year $3.$

In order to minimize its Foreign Exchange risk and exposure, AB entered into a forward contract with its bank on December $1,$ year $2$ to deliver US $$337980$ in three months' time.

Significant dates and exchange rates pertaining to this transaction are as follows:

$\backslash$table$[[,$Spot Rates,Forward Rates$*],[$October $1,$ year $2($Transaction date$),US$$$1=CDN$$$1\mathrm{.}3,],[$December $1,$ year $2($Hedged date$),$US $$1=$ CDN $$1\mathrm{.}32,US$$$1=CDN$$$1\mathrm{.}30$