Question
You are an American (USD = $) exporter selling to Canada (CAD = C). The transaction size is 520,000 Canadian dollars due in 3 months.
You are an American (USD = $) exporter selling to Canada (CAD = C). The transaction size is 520,000 Canadian dollars due in 3 months. Futures contracts come in 125,000 C increments. How much would you eventually receive for the goods if you hedged with futures given the following data. All numbers are $/C.
| Now | 3 months from now | |||
| Spot | 0.765 | 0.778 | 0.953 | 0.966 |
| Futures | 0.771 | 0.961 |
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Foundations Of Financial Management
Authors: Stanley B. Block, Geoffrey A. Hirt, Bartley R. Danielsen
13th Edition
0073382388, 978-0073382388
