10% depreciation in SF, $/SF=.855	No change in spot rates, $/SF=.95 in 180 days	10% appreciation in SF, $/SF=1.045
Value of 8 million SF receivables
Value of (-64) futures contracts
Sum of futures plus receivables
Value of 64 options
Sum of options plus receivables
Money Market Hedge

A) Fill in the futures value table. Your firm will receive 8 million swiss francs (SF) in 180 days. the SF spot rate is .95 $/SF. the 180 day forward rate is .96 $/SF. Currently you can enter into a future contract at .96 $/SF. Note, SF futures and options are for 125,000 SF per contract.

B) For money market hedge: your form can borrow SF at 5% or invest in SF at 4% annual rates. You can borrow US $ at 2% or invest in $ at 1%.