Please show work Thank you McCain Food Ltd. expects to receive 500 million...
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McCain Food Ltd. expects to receive 500 million on April 30, 2018 from a Japanese importer of its products. Today is January 31, 2018 and the spot price between C$ and is C$0.011 92-1.0. The 3- month futures exchange rate is C$0.012 per one yen. One futures contract is of the size of 12.5 million Show how McCain foods can hedge the receipt of the 500 million by using the futures market. Secondly, show McCain Foods profit(loss), assuming that the exchange rate on April 30, 2018 is C$0.02 per . Thirdly, explain how cash settlement, instead of actual delivery, will work
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