exchange rate is currently $1.85 us per 1 british pound. interest rate is 4% in the us and 3% in the uk. a bank is long a futures contract to buy 1,000,000 pounds for 1.8 million in one year. which of the following statements is correct?

a. the banks position will decline in value if the pound sterling appreciates against the us dollar

b. to hedge the exposure to exhcange rate fluctuations, the bank should borrow in the us, convert dollars to pounds, and invest in the uk

c. the bank faces no exchange rate risk becasue the futures price is locked in

d, the bank is obligated to purchase pound sterling below the expected future exchange rate