1. Its Sept. 2023. Division A of U.S. Toys Inc. owes 2.3 mil. C$ to a Canadian firm to be paid in February 2024, but another Division B of the U.S. Toys Inc. will receive 1.5 mil. C$ from a different Canadian client also in February 2024. U.S. Toys Inc. plans to transact in spot foreign exchange market to exchange US dollars and Canadian dollars (C$) in February 2024. U.S. Toys Inc. should engage in _______ hedge, hedging ______ million C$ in the futures market.

1. Short; 0.8
2. Long; 0.8
3. Short; 2.3
4. Long; 2.3
5. Short, 1.5