B. It is 12th January and the following information is available for Euro () currency futures prices (contract size 62,500): March June September 0.6871/ 0.6915/ 0.6990/ Note: Assume there are 360 days in a year. Required: i. A Portuguese company is due to receive British Pound () 8 million in June. Show how the company can hedge its transaction risk using currency futures, assuming that the spot rate on expiry of the June futures contract is 0.6900/. (15 marks) ii. A Dutch company expects to pay British Pound () 3.5 million to a British supplier in September. Show how the company can hedge its transaction risk using currency futures, assuming that the spot rate on expiry of the September futures contract is 0.6960/. (15 marks) iii. Discuss the differences between currency forward contracts and currency futures contracts. (25 marks)