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You need to pay $300,000 US for a machine by converting CAD in three months time. The current rate is 0.78 USD per CDN. A

You need to pay $300,000 US for a machine by converting CAD in three months time. The current rate is 0.78 USD per CDN. A Bank has offered you a forward contract at 0.76 USD per CAD. You decide hedge with a forward contract. If the CAD dollar appreciates to 0.79 USD per CAD then:

A. You have incurred a loss of 14,990 by hedging

B. You have incurred a gain of 14,990 by hedging

C. Your machine was originally valued at 386,615 CAD

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