Deb Company's year$-$end is on December $31.$ On November $1,2019$ when the U$.$S$.$ dollar was worth CDN$$1\mathrm{.}365,$ Deb sold merchandise to an American client for US$$300,000.$ Full payment of this invoice was expected by March $1,2020.$ On December $1,$ the spot rate was CDN$$1\mathrm{.}3450,$ and the three$-$month forward rate was CDN$$1\mathrm{.}3250.$

In order to minimize its Foreign Exchange risk and exposure, Deb entered into a forward contract with its bank on December $1,2019$ to deliver US$$300,000$ in three months' time. The spot rate at year$-$end was CDN$$1\mathrm{.}36$ and the forward rate from December $31,2019$ to March $1,2020$ was CDN$$1\mathrm{.}34.$ On March $1,2020,$ Deb received the US$$300,000$ from its client and settled its contract with the bank.

Significant dates and exchange rates pertaining to this transaction are as follows:

Spot Rates

Forward Rates$*$

November $1,2019($Transaction date$)$

US$$1=$ CDN$$1\mathrm{.}365$

December $1,2019($Hedged date$)$

US$$1=$ CDN$$1\mathrm{.}3450$

US$$1=$ CDN$$1\mathrm{.}3250$

December $31,2019($Year$-$end$)$

CDN$$1\mathrm{.}36$

CDN$$1\mathrm{.}34$

March $1,2020($Settlement date$)$

US$$1=$ CDN$$1\mathrm{.}368.$

US$$1=$ CDN$$1\mathrm{.}368.$

$*$for contracts expiring on March $1,2020$

How much $($in Canadian Dollars$)$ will Deb expect to receive from the bank when its forward contract is settled?

Question $9$ options:

$$397,500$

$$409,500$

$$403,500$

$$402,000$