2. Your firm is a U.K.-based exporter of bicycles. You have sold an order to a French firm for 1,000,000 worth of bicycles. Payment from the French firm (in euro) is due in 12 months. Detail a strategy using futures contracts that will hedge your exchange rate risk. Have an estimate of how many contracts of what type and maturity. Contract Size Country 10,000 Britain (Pound) 1 Month Forward 3 Months Forward 6 Months Forward 12 Months Forward 10,000 Euro 1 Month Forward 3 Months Forward 6 Months Forward 12 Months Forward SFr. 10,000 Swiss Franc 1 Month Forward 3 Months Forward 6 Months Forward 12 Months Forward U.S. $ equiv. Tuesday Monday $1.9600 $1.9400 $1.9700 $1.9500 $1.9800 $1.9600 $1.9900 $1.9700 $2.0000 $1.9800 $1.5600 $1.5400 $1.5700 $1.5500 $1.5800 $1.5600 $1.5900 $1.5700 $1.6000 $1.5800 $0.9200 $0.9000 $0.9400 $0.9200 $0.9600 $0.9400 $0.9800 $0.9600 $1.0000 $0.9800 Currency per U.S. $ Tuesday Monday 0.5102 0.5155 0.5076 0.5128 0.5051 0.5102 0.5025 0.5076 0.5000 0.5051 0.6410 0.6494 0.6369 0.6452 0.6329 0.6410 0.6289 0.6369 0.6250 0.6329 SFr. 1.0870 SFr. 1.1111 SFr. 1.0638 SFr. 1.0870 SFr. 1.0417 SFr. 1.0638 SFr. 1.0204 SFr. 1.0417 SFr. 1.0000 SFr. 1.0204 a. Go short 100 12-month euro futures contracts; and short 80 12-month pound futures contracts. b. Go long 100 12-month euro futures contracts; and long 80 12-month pound futures contracts. Go long 100 12-month euro futures contracts; and short 80 12-month pound futures contracts. d. Go short 100 12-month euro futures contracts; and long 80 12-month pound futures contracts. None of the above. C. e