5. Suppose a German pension company expects to receive a payment of 5 million Swiss Francs (CHF) on December 1. The current spot rate is E 1.20. a. If there is no change in the spot rate how many euros would it receive on December CHF 1? Assuming this company does not hedge the exchange-rate risk, would it rather see the CHF depreciate or appreciate over 90 days? b. c. Suppose the company decides to hedge this risk by using the futures market. Let the current December 1 futures price of CHF be 1.19. How many euros would it receive? Why might the firm do this instead of waiting for the future spot rate? d. Briefly, what are the key differences between futures contracts and forward contracts in foreign exchange