2) Alender expects to receive 125 million Euro on April 28, 2020 as it will collect a debt from a French borrower. Since she lives in the U.S., she will convert her proceeds into U.S. dollars at the time and wants to hedge the risk in Euro USD exchange rate. Although Euro FX Futures contracts delivers every month, deliveries always take place in the third week of each month. Therefore, because of this timing discrepancy, she chooses to use the May 2020 Euro FX Futures contract to create an imperfect hedge today (February 17), which is currently trading at USD 1.00 per Euro. The current spot price of Euro is USD 1. 10 per Euro. Each Euro FX Futuros contract is on 125.000 Euro a) Is this a long hedge or a short hedge? How many contracts should be used to do the hedge? And on April 28, should she buy or sell the futures contracts? b) if on April 28, 2020, May 2020 futures price for Euro is USD 1.02 per Euro and the spot price of Euro is USD 1.04 per Euro, what will be the effective Euro price to be received by the tender on April 2017