If an FI has to hedge a $5 million liability exposure in Swiss francs (SFr), what options should it purchase to hedge this position? Using Figure 24–13, how many contracts of Swiss franc futures options should it purchase (assuming no basis risk) if it wants to hedge against the SFr falling in value against the dollar given a current exchange rate of US$1.0740/SFr1 (or 0.9311SFr/US$1). (Buy 40 call options on SFr futures.)