A multinational financial institution in Chicago wishes to transfer 50,000,000 euros from bank in Berlin, Germany. The transfer will take place in February although the transaction will be hedged with March euro futures contract- which matures one month after the month of the funds transfer. Current spot exchange rate for the euro futures contract is 125,000 euros.

To hedge the exchange rate risk in this transaction, the Chicago firm should

Question options: option 2 is wrong

1)	Sell euro futures

2)	Buy euro futures

3)	Initiate a long position in euro futures

4)	None of the above