Hedging with Futures Explain how a U.S. corporation could hedge net receivables in euros with futures contracts. Explain how a U.S. corporation could hedge net payables in Japanese yen with futures contracts. Step-by-step solution Step 1 of 1 A Hedging of net receivables in with futures contract by firm: The firm should obtain a futures contract to sell the receivable within a specified period of time. Find the futures rate in $ per for the given period. Now estimate the amount of dollars to be received in the given time by using the futures rate per in terms of dollars for the given period. Cash inflows in $ = Receivables in * Futures rate in $ per . Hedging of net payables in \ with futures contract by firm: The firm should obtain a futures contract to buy the \ payable within a specified period of time. Find the futures rate in $ per for the given period. Now estimate the amount of dollars to be paid in the given time by using the futures rate per in terms of dollars for the given period. Cash outflows in $ = payables in \ ~ Futures rate in $ per \