DOT A LIS LUULISIIL DUL TULO commitment to the owner, and are standardized. Question 20 (3.7 points) JCrew Co. is expecting to receive 100,000 Canadian dollars (C$) in one year. JCrew expects the spot rate of Canadian dollar to be $0.64/C$ in a year, so it decides to avoid exchange rate risk by hedging its receivables. The spot rate of the Canadian dollar is quoted at $0.68/C$. The one-year forward rate exhibits an 5% discount. How does JCrew Co. use forward contracts to hedge the exchange rate risk for the 100,000 Canadian dollars receivables and how many U.S. dollars JCrew Co. will receive? Buy Canadian dollars forward and receive $60,800 Sell Canadian dollars forward and receive $64,600. Sell Canadian dollars forward and receive $60,800. Buy Canadian dollars forward and receive $64,600. 324 Question 21 (3.7 points) Safari Co. ordered raw material from Switzerland on June 1st and agreed to pay 200 F10 Priser F8 Insert F5 F6 * OD