a U.S. based MNC exports specialized software to the Eurozone. It is expected to receive a payment of 36 million in 90 days. The company reviews the currency dealers' expectations and finds out many dealers expect the euro to appreciate in the coming three months. The MNC decides to hedge the euro receipts anyway. The MNC should:

Enter a forward contract to buy euros Buy euro futures Sell euro futures Either a or b

Refer to the above question. Assume the MNC decides to go for the futures alternative. The MNC finds that the spot rate today is $1.1240/ , and the futures rate is $1.1320/ . The euro futures contract size on the Chicago Mercantile Exchange is 125,000 per contract. How many contracts should the MNC Buy/sell?

324 contracts 326 contracts 288 contracts 320 contracts None of the above. The MNC should not be speculating in futures