Elverys receives pounds each month as payment for the tennis balls that it exports. It anticipates that the pound will depreciate over time against the dollar. a. (10 pt) How can Elverys use currency futures contracts to hedge against exchange rate risk? Are there any limitations of using currency futures contracts that would prevent Elverys from locking in a specific exchange rate at which it can sell all the pounds it expects to receive in each of the upcoming months? b. (10 pt) How can Elverys use currency options to hedge against exchange rate risk? Are there any limitations of using currency options contracts that would prevent Elverys from locking in a specific exchange rate at which it can sell all the pounds it expects to receive in each of the upcoming months? Give answer with theoretical background