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In September, you implemented a hedging strategy for the sale of USD 6 7 5 , 0 0 0 . You sold 5 futures contracts

In September, you implemented a hedging strategy for the sale of USD 675,000. You sold 5 futures contracts each for USD 125,000 at USD/CAD 1.3420 maturing on December 16. You settled these contracts through a reverse transaction at USD/CAD 1.3570. On December 12, you sold the USD 675,000 at USD/CAD spot rate 1.3658. Calculate the effective price you sold your USD.
A. The effective price is USD/CAD 1.3808
B. The effective price is USD/CAD 1.3797.
C. The effective price is USD/CAD 1.3508.
D. The effective price is USD/CAD 1.3519.

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