Permian Company engages in many foreign currency transactions. Company policy is to hedge exposure to exchange gains and losses using forward contracts. On July 1, Permian bought merchandise from a Canadian company for 120,000 Canadian dollars, payable on September 30. Exchange rates of $1 for Canadian dollars were as follows:

Spot rate, July 1	1.30
Forward rate, September 30	1.30
Spot rate, September 30	1.35

Required:

1. Did Permian Company buy or sell Canadian dollars for future delivery?

2. According to company policy, how many U.S. dollars did Permian pay for this purchase? Round your answer to the nearest dollar.