Volusia, Inc. is a U.S,-based exporting firm that expects to receive payments denominated in both euros and

Canadian dollars in one month. Based on today's spot rates, the dollar value of the funds to be received is

estimated at $500,000 for the euros and $300,000 for the Canadian dollars. Based on data for the last fifty months,

Volusia estimates the standard deviation of monthly percentage changes to be 8 percent for the euro and 3 percent

for the Canadian dollar. The correlation coefficient between the euro and the Canadian dollar is 0.30.