Assume you are anticipating receiving $30M USD in 12-months time associated with the sale of equipment you manufacture in Northern Quebec. The spot rate for USD is 1.3235-60 and the swap rates for 12 months are -20 to -35. The lending and borrowing rates for USD and CAD are respectively 0.30% to 1.2% and 0.50% to 1.3% annually. Remember that forward contracts have bigger spreads than spot contracts.

How do you minimize your Canadian dollar cost today and what is that cost?

What is the value you can maximize in Canadian dollars today?