a. What would be the Canadian dollar amount of forward cover required by company policy in 3 months?

C$ _____

(Round to the nearest cent.)

b. What would be the Canadian dollar amount of forward cover required by company policy in 6 months?

C$ _____

(Round to the nearest cent.)

c.

What would be the Canadian dollar amount of forward cover required by company policy in 12 months?

C$ _____

(Round to the nearest cent.)

Caribou River. Caribou River, Ltd., a Canadian manufacturer of raincoats, does not selectively hedge its transaction exposure. Instead, if the date of the transaction is known with certainty, all foreign currency-denominated cash flows must utilize the following mandatory forward cover formula: E. Caribou expects to receive multiple payments in Danish kroner over the next year. Kr3,200,000 is due in 90 days; Kr2,100,000 is due in 180 days; and Kr850,000 is due in one year. Using the following spot and forward exchange rates, what would be the amount of forward cover required by company policy for each period? , Mandatory Forward Cover 0-90 days 91-180 days 180 days Paying the points forward 90% 60% 40% Receiving the points forward 100% 90% 50% Click on the icon located on the top-right corner of the data table in order to copy its contents into a spreadsheet. Spot rate, Kr/C$ 4.72 3-month forward rate, Kr/C$ 4.74 6-month forward rate, Kr/C$ 4.76 12-month forward rate, Kr/C$ 4.79 Click on the icon located on the top-right corner of the data table in order to copy its contents into a spreadsheet. Caribou River. Caribou River, Ltd., a Canadian manufacturer of raincoats, does not selectively hedge its transaction exposure. Instead, if the date of the transaction is known with certainty, all foreign currency-denominated cash flows must utilize the following mandatory forward cover formula: E. Caribou expects to receive multiple payments in Danish kroner over the next year. Kr3,200,000 is due in 90 days; Kr2,100,000 is due in 180 days; and Kr850,000 is due in one year. Using the following spot and forward exchange rates, what would be the amount of forward cover required by company policy for each period? , Mandatory Forward Cover 0-90 days 91-180 days 180 days Paying the points forward 90% 60% 40% Receiving the points forward 100% 90% 50% Click on the icon located on the top-right corner of the data table in order to copy its contents into a spreadsheet. Spot rate, Kr/C$ 4.72 3-month forward rate, Kr/C$ 4.74 6-month forward rate, Kr/C$ 4.76 12-month forward rate, Kr/C$ 4.79 Click on the icon located on the top-right corner of the data table in order to copy its contents into a spreadsheet