James expects to receive USD $5$ million in six months$$ time and hopes to hedge himself against the volatility of the USD$/$ZAR exchange rate. He phones a broker who quotes him $500/550$ as the forward points for the transaction. What action should James take, and at what price $($i$.$e$.$ which forward points$)$ to hedge his exposure?

$($a$)$ Sell USD $5$m forward at $500$ points as he is exposed to the ZAR depreciating.

$($b$)$ Sell USD $5$m forward at $500$ points as he is exposed to the ZAR appreciating.

$($c $)$ Buy USD $5$m forward at $550$ points as he is exposed to the ZAR depreciating.

$($d $)$ Buy USD $5$m forward at $550$ points as he is exposed to the ZAR appreciating.

$($e $)$ None of the above