The current spot rate is used by Jones as a forecast of the future spot rate one year into the future. The C$, AP, and T$ are expected to move together against the U.S. dollar during the next year. The A$s movements are expected to be independent of the movements of the other currencies. As exchange rates are difficult to predict, the forecasted net dollar cash flows per currency may be inaccurate. Could there be offsetting exchange rate movements from whatever exchange rate movements do occur? Explain.

Currency	Total Inflow	Total Outflow	Total Inflow in USD	Total Outflow in USD	Net Foreign Exchange Exposure in USD
Australia Dollars (A$)	33,000,000	$ 3,000,000	$ 30,030,000	$ 2,730,000	$ 27,300,000
Canada Dollars (C$)	6,000,000	$ 2,000,000	$ 3,660,000	$ 1,220,000	$ 2,440,000
Argentina Pesos (AP)	12,000,000	$ 11,000,000	$ 2,280,000	$ 2,090,000	$ 190,000
Taiwan Dollars (T$)	5,000,000	$ 9,000,000	$ 3,300,000	$ 5,940,000	$ (2,640,000)

Currency	Spot Rate	One-Year Forward Rate
A$	$ 0.91	$ 0.94
C$	$ 0.61	$ 0.60
AP	$ 0.19	$ 0.16
T$	$ 0.66	$ 0.65