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Canada Airlines just bought 20 Boeing 787ER to be delivered in 1 year. The contract currency is in USD, worth $7 billion USD. The current
Canada Airlines just bought 20 Boeing 787ER to be delivered in 1 year. The contract currency is in USD, worth $7 billion USD. The current exchange rate is $0.7855 per CAD. The one-year forward rate is $0.7895. Canada Airlines decided to enter into a forward hedge. If the spot rate in one year turns out to be $0.7865. How much did Canada Airline make/lose on the hedge?
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