Quote:
Originally Posted by Street Pharmacist
Honest question: how do they pay their payroll ahead of time?
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You don't pay your payroll ahead of time.
You know that your payroll will be $10M per month, let's say. And it's in US dollars.
So you buy forward contracts for $10M for every month of the season.
How a forward works is that you agree to the rate now, but you deliver the Canadian dollars and receive the US dollars at a set date, instead of now.