3. Suppose you owe 10,000,000 in 75 days. You can use futures contracts to hedge your risk. Currently trading are futures that expire in 90 days with a futures price of $1.765/. The current spot exchange rate is $1.733/. The size of each futures contract is 62,500. On day 75 the spot exchange rate is $1.79/ and the futures contract that now has 15 days remaining to maturity has a price of $1.80/. What risk do you face? (2 points) b. How would you hedge this risk include all of the trades you would make and the date you would make them? (6 points) What will your net dollar cash flow be on day 75 if you hedge? (6 points) d. If on day 75 the spot rate is $1.68/f and the futures price is $1.7120/, what is your net dollar cash flow if you hedge? (4 points) a. C. 3. Suppose you owe 10,000,000 in 75 days. You can use futures contracts to hedge your risk. Currently trading are futures that expire in 90 days with a futures price of $1.765/. The current spot exchange rate is $1.733/. The size of each futures contract is 62,500. On day 75 the spot exchange rate is $1.79/ and the futures contract that now has 15 days remaining to maturity has a price of $1.80/. What risk do you face? (2 points) b. How would you hedge this risk include all of the trades you would make and the date you would make them? (6 points) What will your net dollar cash flow be on day 75 if you hedge? (6 points) d. If on day 75 the spot rate is $1.68/f and the futures price is $1.7120/, what is your net dollar cash flow if you hedge? (4 points) a. C