Question
Suppose that you are a finance manager at a U.S. based MNC. On January 1st, you anticipate you will need to purchase C$320,000.00 (Canadian dollars)
Suppose that you are a finance manager at a U.S. based MNC. On January 1st, you anticipate you will need to purchase C$320,000.00 (Canadian dollars) worth of supplies from a Canadian supplier in March using Canadian dollars (C$). The current spot rate for the Canadian dollar is $0.54.
In the previous parts of this question your MNC paid $172,800.00 for a futures position (C$320,000.00 at $0.54) , but then closed that position by selling a futures contract that allowed them to receive $169,600.00 (C$320,000.00 at $0.53).
Your MNC (Incurs a loss or Acrrues Gains??) from these positions totalling __________$
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