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A U.S. Flis planning to hedge its one-year 100 million Swiss francs (SF) - denominated liability against exchange risk. The current spot rate is $0.58/SF.

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A U.S. Flis planning to hedge its one-year 100 million Swiss francs (SF) - denominated liability against exchange risk. The current spot rate is $0.58/SF. A 1-year SF futures contract is currently trading at $0.60/SF. SF futures are sold in standardized units of SF 125,000. The Fl should be worried about the SF and therefore SF futures contracts to hedge against the exchange rate risk exposure. (Please drag the correct words into the corresponding blank spaces.) appreciating depreciating buy I sell

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