Hedge against british pounds exchange rate risk

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Reference no: EM131088345

Next February, suppose you need to pay 5,000,000 British Pounds (not Euros). Which is the correct action to take today in order to hedge against British Pounds exchange rate risk?

a. Short 40 British Pounds futures contracts expiring in March

b. Long 40 British Pounds futures contracts expiring in March

c. Short 80 British Pounds futures contracts expiring in March

d. Long 80 British Pounds futures contracts expiring in March

Reference no: EM131088345

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