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A Japanese firm is expecting a CAD receivable in December from a shipment of Toto toilets. To hedge the risk arising from a potential decrease

A Japanese firm is expecting a CAD receivable in December from a shipment of Toto toilets. To hedge the risk arising from a potential decrease in the value of the CAD, the firm decides to buy a futures contract. The price for a futures contract on CAD with a size of 15,000 units and a maturity date in 60 days is JPY125/CAD. If the firm sells 10 CAD futures contracts, how many JPY will it receive in 60 days? a. 187500 b. 18750000 c. 3125000 d. 1200

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