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For selling its products in UK, XYZ will receive 5 million British Pounds next March. Which of the following is the best action today in
For selling its products in UK, XYZ will receive 5 million British Pounds next March. Which of the following is the best action today in order to hedge against FOREX risk?
a) Long 40 British Pounds futures contracts expiring in March
b) Short 40 British Pounds futures contracts expiring in March
c) Long 80 British Pounds futures contracts expiring in March
d) Short 80 British Pounds futures contracts expiring in March
Please provide explanation why .
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