0. An FI has a l-year 8-percent USS160 million loan financed with a 1-year 7-percent UK100 million CD. The current exchange rate is $1.60/E. Assume that the hedge was placed under market conditions indicated in question 28, and that the BP futures contract is now trading at $1.62/. Assume the futures contract has some days remaining to maturity. What will be the gain or loss on the hedge if it is unwound at this price? A. $4,000,000 loss. B. $4,280,000 loss. C. $4,000,000 gain. D. $4,280,000 gain. E. $6,400,000 gain. 28. An FI has a 1-year 8-percent USS160 million Joan financed with a l-year 7-percent UKE100 million CD. The current exchange rate is $1.60/. ir the current (spot) rate for one-year British pound futures is currently at $1.58/ and each contract size is 62,500, how many contracts are required to be purchased or sold in order to fully hedge against the pound exposure? (Assume no basis risk). A. Sell 1,712 BP futures. B. Buy 2,560 BP futures. C. Buy 1,600 BP futures. D. Sell 1,600 BP futures. E. Buy 1,712 BP futures