question regarding forward contracts and exchange rates

6. Forward Contract Your company desires to avoid the risk from exchange rate fluctuations, and it will need CS400,000 in 90 days to make payment on imports from Canada. You decide to hedge your position by purchasing Canadian dollar forward. The current spot rate of the Canadian dollar is $.75 while the forward rate is S.77. You expect the spot rate in 90 days to be $.78. How many dollars will you need for the CS400,000 in 90 days if you purchase Canadian dollar forward? ( 1 point) hapter 4 1. Percentage Depreciation Assume the spot rate of the euro is $1.20. The expected spot rate 1 year from now is assumed to be S1.25. What percentage change over the next year does this reflect? Is it appreciation or depreciation? ( 1 point) 2. Inflation Effects on Exchange Rates Assume that the U.S, inflation rate becomes low relative to Canadian inflation. Other thing being equal, how should this affect the (a) UiS