In January 2007 BW, a French coamatie manufacturer involves sintomer, MW PLC, for USD 162.500 June 2021. As of 2010 CURVJUDD rate is 00110 -0.0125. The contracts are valable with contract of UOD 20,000. As of January 2009 frontro March contracts 92 June contracts Septembar contracts 692.7 aw would like to hedge to USD exposure uning futuren. e a) Calculate the target outcome for BW W EUR 12 m B b) Which of the available futures contracts should BW use and how many? ma c) Explain whether these contracts need to be bought or sold 12 mars d) Suppose that in June 2021, EUR/USD spot rate is 0.9010 -0.9022. and the price of Jant USD/EUR futures is 50.3. Calculate BW's profit or loss on target outcome 15 mars) si Show how BW will close out its futures position and calculate profit or loss on futures (5 m) in January 2021 BW, a French cosmetics manufacturer, invoices its US customer, Marwalt PLC, tor USD 162.500 payable in June 2021. As a ry 2009 EUR/USD rate is 0.9110 - 09125. The futures contracts are available with contract size of USD 20.000. As of January 2021. Eurones contracte March contracts 92 June contracts 92.5 September contracts 92.7 BW would like to hedge its USD exposure using futures a) Calculate the target outcome for BW in EUR b) Which of the available futures contracts should BW use and how many? b) Which of the available futures contracts should BW use and how many? c) Explain whether these contracts need to be bought or sold. d) Suppose that in June 2021, EUR/USDIspot rate is 0.9010 -0.9022, and the price of June USD/EUR 1ures is 90.3. Calculate wyprofit or om e) Show how BW will 'close out its futures position and calculate profit or loss on futures. f) Evaluate BW's hedge efficiency and explain why hedge efficiency is rarely perfect