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As exporter to UK, you will receive 200,000 GBP in 3-months. If the 3-month forward rate is 1.56 USD / GBP, describe your hedging strategy

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As exporter to UK, you will receive 200,000 GBP in 3-months. If the 3-month forward rate is 1.56 USD / GBP, describe your hedging strategy with this forward contract. How many USD will you receive by using the hedging strategy? If 3-months from now the spot rate is 1.60 USD/GBP, by using the forward contract you have made an opportunity gain/loss of how many USD? Buy 200K GBP 3-month forward, receive 312,000 USD; Opportunity gain of 8000 USD Sell 200K GBP 3-month forward, receive 312,000 USD; Opportunity gain of 8000 USD Sell 200K GBP 3-month forward, receive 312,000 USD; Opportunity loss of 8000 USD Buy 200K GBP 3-month forward, receive 312,000 USD; Opportunity loss of 8000 USD

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