A company will receive 250,000 [GBP] in December. They are debating whether to enter into a 3 month Future Contract, or do a Synthetic Forward.

*If the company decides to use futures contracts, how many contracts do they need to use?

*Is it best for the company to do a synthetic forward or enter into a futures contract?

In order to decide the best option, you need to find the value of the December futures contract for British Pounds and the yield of the 3-month U.S. Treasury bill. The 3-month Treasury bill issued by the Bank of England has a yield of 0.5 percent per year

Data:

GBP Spot Rate:	1.2462 [USD/GBP]	as of Sep. 23 @ 1:13 pm
GBP Future Price:	1.2509 [USD/GBP]
3-month US Yield	1.91%	as of Sep. 20