2) Henderson Inc. has an outflow of 500,000 in January. The standardized size for future contracts on the pound is 62,500. Help devise a hedging strategy for Henderson Inc. using futures contracts. Following are the prices in the future market and spot market on November 18: the spot rate is 1.6395$/, December futures rate for contracts on the pound is 1.6300$/, March futures rate for contracts on the pound is 1.6345 $/.

On January 15, Henderson Inc. pays 500,000. On that day the spot market has a rate of 1.6410$/. The spot rate at expiration of the December contract was 1.6425 $/.The futures rates for the December contracts on the pound was 1.6310$/ when it expired. The March pound futures was trading at 1.6380$/. What is the effective exchange rate that Henderson pays using your hedge strategy?