Case study 8 Walmart, an American company, is due to pay a Canadian supplier CAD1,000,000 in six months' time. It is now 1/01/2021. Relevant data from the foreign currency and money market is given below: Exchange rates quoted today are: Spot rate CAD/USD = 0.7400 -0.7450 One-month forward rate CAD/USD= 0.7450 -0.7520 Three-month forward rate CAD/USD=0.7500 -0.7600 Six-month forward rate CAD/USD = 0.7600 -0.7720 Canada US Interest rates (p.a.) are: 2%-3.5% 6.2%-8% Futures market (CAD62,500 contracts, margins are USD 1,000 per contract) March CAD/USD=0.7560 June CAD/USD=0.7650 September CAD/USD=0.7850 Options market (62,500 CAD contracts, premiums are quoted in cents per CAD) Call option Put option Exercise price June September June September 0,7600 2.45 3.40 0.45 0.97 0,7800 1.65 2.68 1.20 1.80 0,8000 0.80 1.89 2.05 2.78 Calculate the dollar payment using each type of hedging technique suggested by the information above and determine the best technique for the company