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Your company will receive a payment of C$400,000 in 90 days. The 90-day forward rate in the Canadian dollar is $1.15. If you use a
Your company will receive a payment of C$400,000 in 90 days. The 90-day forward rate in the Canadian dollar is $1.15. If you use a forward hedge, you will:
| sell forward C$400,000 and receive $460,000 today. |
| sell forward C$400,000 and receive $460,000 in 90 days. |
| pay $460,000 in 90 days. |
| buy forward C$400,000 and pay $347,826 today. |
| pay $347,826 in 90 days. |
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