It is Nov 16th and the US firm for which you work owes SF2,500,000 on Jan. 31. To hedge the foreign exchange risk faced by the firm, you can take a position in SF futures which trade in sizes of SF125,000 per contract and mature on Feb 17th. The current spot and futures exchange rates are S=$1.054/SF and F=$1.035/SF. Suppose on Jan. 31 the spot and futures prices are S=$1.032/SF and F=$1.015/SF. a. What risk do you face? (2 points) b. How you would hedge against this risk? Include all of the trades you would make and the date you would make them. (6 points) c. What will your net dollar cash