Hedging means establishing an offsetting currency position so as to lock in a dollar (home currency) value for the currency exposure and thereby eliminate the risk posed by currencies fluctuations. - In March, Multinational Industries Inc. has a receivable (Sep) of 500,000 pounds, and it assesed the following information - \$1.30/ with probability 0.15 - \$1.35/ with probability 0.20 - \$1.40/ with probability 0.25 - \$1.45/ with probability 0.20 - \$1.50/ with probability 0.20 - What is the expected spot rate for Sept? - If the six-month forward rate is $1.40, should the firm sell forward its 500,000 pounds receivables due in Sept