James Bay Exports. A Canadian exporter, James Bay Exports, will be receiving six payments of 12,600, ranging from now to 12 months in the future. Since the company keeps cash balances in both Canadian dollars and U.S. dollars, it can choose which currency to exchange the euros for at the end of the various periods. Which currency appears to offer the better rates in the forward market? (Click on the icon to import the table into a spreadsheet.) Days Forward D Period spot C$ = 1.00 US$ = 1.00 1.3375 1.3238 1.3402 1 month 30 1.3243 2 months 60 1.3431 1.3249 3 months 90 1.3455 1.3253 6 months 180 1.3480 1.3255 12 months 360 1.3501 1.3279 Calculate the forward premium, the Canadian dollar proceeds, and the difference from the spot rate proceeds in the C$/Euro forward market below: (Round the forward premium to three decimal places and the Canadian dollar amounts to the nearest cent.) Forward Premium C$ Proceeds of Days Forward Difference Over Spot Period C$/euro on the C$/euro 12,600 Spot 0 1.3375 1 month 30 1.3402 % 2 months 60 1.3431 % 3 months 90 1.3455 % 6 months 180 1.3480 % 12 months 360 1.3501 % C$ C$ Calculate the forward premium, the U.S. dollar proceeds, and the difference from the spot rate proceeds in the US$/Euro forward market below: (Round the forward premium to three decimal places and the U.S. dollar amounts to the nearest cent.) 3 3 3 3 3 3 C$ C$ C$ C$ C$ Period Days Forward US$/euro Forward Premium on the US$/euro GA US$ Proceeds of 12,600 Spot 0 1.3238 $ $ 1 month 30 1.3243 % $ $ 2 months 60 1.3249 % $ $ 3 months 90 1.3253 % $ $ 6 months 180 1.3255 % $ $ 12 months 360 1.3279 % $ $ Which currency appears to offer the better rates in the forward market? (Select from the drop-down menus.) The Canadian exporter will be receiving six payments of 12,600 euros, ranging from now to 12 months in the future. Since the company keeps cash balances in both Canadian dollars and U.S. dollars, it can choose which currency to change the euros to at the end of the various periods. And since the company wishes to lock in the forward rate for each and every payment, it would appear that the company should lock in forward rates in than the the resulting dollar proceeds are higher. for all payments. Since the euro is selling forward at a greater premium against the CA Difference Over Spot