Forward Rate Problem 2 Canada (Dollar) in US S Currency per US $ Spot (April 15) 0.6879 1.4537 1 month forward 0.6868 1.4560 3 month forward 0.6844 1.4611 6 month forward 0.6803 1.4699 A US multinational hired a Canadian IT consulting firm to upgrade its internal network. In 6 months when the contract is over, the US firm will need 1.5M Canadian dollars to pay the consultants. The company needs to decide whether or not it should enter into a forward contract to hedge its exchange rate risk. What would it cost the US firm (in US $) if it were to purchase the Canadian dollars spot on April 15? What would it cost the US firm it hedged with a forward contract on April 15 to purchase 1.5M Canadian dollars 6 months later on October 15? Forward Rate Problem 2 Canada (Dollar) in US S Currency per US $ Spot (April 15) 0.6879 1.4537 1 month forward 0.6868 1.4560 3 month forward 0.6844 1.4611 6 month forward 0.6803 1.4699 A US multinational hired a Canadian IT consulting firm to upgrade its internal network. In 6 months when the contract is over, the US firm will need 1.5M Canadian dollars to pay the consultants. The company needs to decide whether or not it should enter into a forward contract to hedge its exchange rate risk. What would it cost the US firm (in US $) if it were to purchase the Canadian dollars spot on April 15? What would it cost the US firm it hedged with a forward contract on April 15 to purchase 1.5M Canadian dollars 6 months later on October 15