How much would they have to pay today

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Question - Sunshade Company has purchased a number of awnings from a company in the UK, with payment due 3 months from today. The payment due is $130,000. The Canadian dollar and British pound rate is currently 1.9857 and the three month CS/E forward rate is 1.9968. If Sunshade Company hedges their foreign currency risk with a forward contract advise the company.

a. How much they will have to pay in three months in Canadian dollars?

b. How much would they have to pay today?

Reference no: EM133164593

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