> I could take other dollars and convert them to CAD at today's spot. I could wait six months and convert then. Either way I'm taking on currency risk.
I see how the second case (waiting six months to convert USD to CAD) involves currency risk. But I don't understand how the first case involves currency risk. If I converted some USD into 1.3MM CAD today, and then held it for six months before paying my vendor, what currency risk did I incur that is eliminated by the futures contract?