Your Canadian company processes raw sugar for sale in the United States, and the firm has just received a container of raw material from the UK. You have an invoice that asks you to pay 20,000 in 30 days. The current exchange rate is $1.75/.

a. What would it cost you, in Canadian dollars, to pay the bill today?

b. If you thought the dollar would trade at $2.50/ in 30 days, what should you do?

c. If you could lock into a forward rate today of $2.25/ for delivery in 30 days, what should you do