2. A U.S. firm must make a 125,000 SFr payment in May. The current spot rate is 0.6163 $US/SFr. The firm wants to hedge the risk using futures contracts. SFr futures are on 125,000 SFr each, but closest available maturity is for June delivery and the price is 0.6201 SUS/SFr. Suppose in May the spot rate changes to 0.6400 $US/SFr and the futures price for June delivery changes to 0.6430 $US/SFr. What is the hedging strategy? What is the net extra cost to the firm? (Note: Assume that daily marking to market is not used, and all profits or losses on the futures position are paid when the position is closed.)