1 How can the Sports Exports Company use currency futures contracts to hedge against exchange rate risk? Are there any limitations of using currency futures contracts that would prevent the Sports Exports Company from locking in a specific exchange rate at which it can sell all the pounds it expects to receive in each of the upcoming months?

The Sports Exports Company receives pounds each month as payment for the footballs that it exports. It anticipates that the pound will depreciate over time against the dollar.