restion $1$

$0$ out

A U$.$S$.$ company will make a payment in Canadian dollars in $180$ days due to an order it received from a Canadian firm today. Assume that the forward rate ands the Canadian dollar are equal. If the U$.$S$.$ firm expects the Canadian dollar to $q,$ against the peso, it would likely wish to$-$hedge. It could hedge by $q,$ dollars forward.