Go short 12 six-month forward contracts; pay 555,600

Go long 12 six-month forward contracts. Receive approximately 549,500

Go long 16 six-month forward contracts; raise approximately 537,600

Go short 16 six-month forward contracts. Pay approximately 537,600

Your firm is a U.K.-based exporter of British bicycles. You have sold an order to an American firm for $1,000,000 worth of bicycles. Payment from the American firm (in U.S. dollars) is due in six months. Detail a strategy using futures contracts that will hedge your exchange rate risk