Suppose that you are a finance manager at a U$.$S$.$ based MNC$.$ On January $1$ st$,$ you anticipate you will need to purchase C $$490,000\mathrm{.}00($Canadian

dollars$)$ worth of supplies from a Canadian supplier in March using Canadian dollars $($C$$).$ The current spot rate for the Canadian dollar is $$0\mathrm{.}77.$

In order to lock in spot rate for this exchange, you purchase a futures contract specifying $C$$$490,000\mathrm{.}00$ at $$0\mathrm{.}77$ per Canadian dollar with a March

$10$th settlement date.

On the settlement date, your MNC will need to pay

$($U$.$S$.$ dollars$)$ for the $C$$$490,000\mathrm{.}00.$