Question Q$1(2$ Points$)$ :

Suppose $S_0\frac{C}{s}=1\mathrm{.}05lo\frac{n}{\text{\$}}.F_{1}Cs=1\mathrm{.}25i\frac{n}{\text{\$}},i^C=20\%,$ and $s^{\text{\$}}=4\%.$ You are to pay $C200,000$ in one year. You want to fix the amount you are receiving in dollars to avoid forcign exchange risk. Form a forward market hedge at $t=0$ and $t=1$ year.