7*.12 points] Biogen expects to receive royalty payments totaling 5 million next month. It is interested in protect ing these receipts against a drop in the value of the pound. It can sell 30-day pound futures (futures contract size of 62,500 ) at a price of $1.6500 per pound or it can buy pound put options with a strike price of $1.6700 at a premium of 4.0 cents per pound. The spot price of the pound is currently $1.6500, and the pound is ex- pected to trade in the range of $1.6250 to S1.7500. Biogen's treasurer believes that the most likely price of the pound in 30 days will be S1.6650. a. How many futures contracts will Biogen need to protect its receipts? How many options contracts? Diagram Biogen's profit and loss range of expected exchange rates. Ignore transaction costs and margins. b. with the put option position and the futures position within its