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Lote Co. needs 200.000 Canadian dollar (CS) in 90 days is trying to determine whether to hedge this positie Lame estimate the value of will

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Lote Co. needs 200.000 Canadian dollar (CS) in 90 days is trying to determine whether to hedge this positie Lame estimate the value of will be $0.56 with probably 255.50.568 with prody 205. SO 576 with probability 25%, and 0.589 with probability 305. The so-day forwaedle of the Canadian dollar is $ 55, and the current spot rate of the Canadian dollar is 5.56. IY Lome implements a forward hedge. what is the probability that hedging will be more costly to the firm than not hedging? 25% 70%

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