Hi,
a question about some real application of futures. Suppose there is a company with a canadian office. All product sales of the company are in the US paid and quoted in US dollars.
However the office expences in Canada run to about 250K monthly. In the wake of CAD traded at 92c US in November 2007 the company wants not to be affected by sudden changes in USD/CAD.
What would be the best strategy for it to hedge against CAD/USD movements?
TradingBoy
a question about some real application of futures. Suppose there is a company with a canadian office. All product sales of the company are in the US paid and quoted in US dollars.
However the office expences in Canada run to about 250K monthly. In the wake of CAD traded at 92c US in November 2007 the company wants not to be affected by sudden changes in USD/CAD.
What would be the best strategy for it to hedge against CAD/USD movements?
TradingBoy