A Canadian firm imports parts from the US for USD 15,000,000 with payment due to the US firm in one year. The market condition is summarized as follows:

Interest rate, US: 5.8% per annum Interest rate, Canada: 5.2% per annum The spot exchange rate: $0.7752/CAD The one-year forward rate: $0.7634/CAD The Canadian firm is considering a forward hedge. Complete the following sentence.

With a forward contract, it would _______________, ________________, in _______. Round to four decimal places in your calculations. Choices are rounded to the nearest thousand.

a) sell; CAD 19,649,000; in one year

b)borrow; USD 14,178,000; today

c) buy ; CAD 19,649,000; in one year.

d) sell; USD 15,00,000; today

e) None of the other answers are correct.