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Ford, Inc exported a fleet of electric cars worth 5 million to a German company. Payment will be received 12 months from today. A

Ford, Inc exported a fleet of electric cars worth 5 million to a German company. Payment will be received 12 

Ford, Inc exported a fleet of electric cars worth 5 million to a German company. Payment will be received 12 months from today. A 1-year futures contract is $1.05/ with a contract size of 250,000. (Points: 2+1) a. How many contracts are needed to hedge the currency risk? b. Long or Short Hedge? c. One year from today, the spot exchange rate becomes $1.15/. How many $ did Canton gain or lose from hedging this transaction?

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