Given the Following Information $\bullet$ He Future Spot Rate C$0 $\bullet$ The Current Spot Rate C$0

Multiple Choice

Given the following information:
$\bullet$ he future spot rate C$0.00965 per yen
$\bullet$ the current spot rate C$0.0088 per yen
$\bullet$ the forward rate C$0.009721 per yen.
What is the cost (or proceeds) in Canadian dollars to eliminate foreign exchange exposure for 100,000 yen to be paid to a foreign supplier.

A) Cost C$965.00
B) Cost C$880.00
C) Cost C$972.10
D) Proceeds C$880.00