11.2   Your rich unclein France has decided to give you an annuity of €2,000 per month.Because you live in Canada, you’re concerned about the effect offoreign currency fluctuations on your new income. You heard afinance guy on the radio talking about how “foreign currencyexchange rate could move against you, if you’re not properlyprepared.â€Â                                                                                             Â
a.    What does itmean for the currency exchange rate to move against you?
b.    Would movingto France mitigate some of the risk? If so, how? If not, whynot?
c.     Assumeyou want to stay in Canada. Your grandparents, who have retired toProvence (France), each receive a Canadian pension of C$1100monthly. What could you do to reduce the risk for all of you?
