(15) On March 1, A U.S. companies expected to receive 50 million yen by the end of July. JPY futures on the Chicago Mercantile Exchange Trade in March, June, September and December. Assume that the yen futures price on March 1 is 0.7800 US cents, the spot and futures prices are 0.7200 and 0.7250 cents respectively when the futures contract is closed. (1) Which delivery month should be choosen? (2) How to hedge? (short or long hedging) |(3) Calculate the effective price and the total amount of funds received by the hedger