Please answer the following questions and all its parts(max 4 parts according to chegg). Failure to do so will result in negative rating. Try answering on a piece of paper if possible and scan it please and i will give good rating. Thanks!

exposure with Finance Hlw 201712 ca) A French company expects to pay US $ 1,200,000 to a us supplier in late November. It is now late July, and the current spot exchange rate is 1 = $ 1-2200. September and December dollar- euro currency futures an are currently being traded at $1.2165 and $1.2170 respectively. The company wants to hedge its currency futures. The turo futures are available for a standard quantity of 125.000 and the tick size is 0.0001. -ci) Explain how the French company might establish a hadge against exchange rate risk. cii) / Suppose that in November when the dollars are paid, the spot rate has moved to 12040 and the futures price is 1.2030. Show the outcome of the hedge and calculate the effective exchange rate cili) Comment on the basis risk if any. (6) Consider a crude oil futures contract in which the current futures price is $34.91. The initial mangin. requirement is $100 per contract and the maintenance margin requirement is $80 percontract. You go long to contracts (contract size aso barrels) and meet all margin calls but do not withdraw any excess margin. Assume that on the first day, the contract is established at the settlement price and hence no mark-to-market gain or loss on that day. > complete the table and determine the price level that would trigger a margin call Funds Price Gainl | Ending Day Beginning Balance deposited Price Change Loss Balance Futures 0 - den In 39.91 41-45 34.79 39.446 39.39 34.13