Case study 2 General Electric, an American company is due to pay a Canadian supplier CAD750,000 in three months' time. It is now 1/01/2021. Relevant data from the foreign currency and money market is given below: Fshange rates fotos icy are: Spot rate USD/CAD 1.2600 - 1.2700 One-month forward rate USD/CAD - 1.2520 - 1.2650 Three-month forward rate USD/CAD 1.2400 -1.2570 Canada US Interest rates {p.i.FATES 2% -4% 6% -8% Futures market (CAD$2,500 contracts, margins are USD 1,0430 per contract) March (3) CAD/USD 0.8050 June (6) CAD/USD=0.8200 September (9) CAD/USD=0.8320 Options market (CAD62,500 contracts, premiums are quoted in cents per CAD) Call option Put option Exercise price March June March June 0.8000 2.90 3.65 0.20 0.32 0.8200 1.60 2.35 1.05 1.80 0.8400 0.87 1.10 2.10 2.98 Calculate the dollar payment using each type of hedging technique suggested by the information above and determine the best technique for the company