Refer to Figure 24.6 in the text to answer this question. If a Canadian company exports its

Question:

Refer to Figure 24.6 in the text to answer this question. If a Canadian company exports its goods to the U.S., how would it use a U.S.–traded futures contract on Canadian dollars to hedge its exchange rate risk? Would it buy or sell Canadian dollar futures? In answering, pay attention to how the exchange rate is quoted in the futures contract.

Data in Figure 24.6