A US firm exports parts to Canada for CAD 12,000,000 with receipt due from the Canadian 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: $.7752/CAD

The one-year forward rate: $.7634/CAD

The US 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. None of the other answers are correct.

B. sell; USD 9,161,000; one year

C. invest; 9,302,000; today

D. borrow; CAD 11,407,000; today

E. buy; USD 9,161,000; one year