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On July 1 st IBM recorded a 3 month receivable of 54,000,000 that they need to hedge on the future market. The contract size of

On July 1^st IBM recorded a 3 month receivable of 54,000,000 that they need to hedge on the future market. The contract size of the Pound future contracts is 62,500. The quote of the September future contract is 1.25 while the spot rate is 1.21. IBM will

	buy 468 contracts on Pound
	Sell 468 contracts on Pound
	sell 864 contracts on Pound
	buy 864 contracts on Pound
	none of the other answers is correct

How do you know when you sell or when you buy contracts ?

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