Part A A Canadian company is planning on using a money market hedge to hedge its receivables of 200,000 euros. The current deposit rate for the euro is 3% and the deposit rate for the Canadian is 2%. The lending rate for the euro is 4% and the lending rate for the Canadian is 5% The spot rate for the euro is 1.50, the forward rate is 1.54 and the 12 months spot rate will be $1.53. The receivables are due in 12 months. Calculate how much the company will receive using a money market hedge? 5 marks Part B Use the information from part A to determine how much the company will receive using a forward contract? 4 marks Which is beneficial for the company? 1 mark