Suppose that B.J. International, a U.S. exporter, sells 1 million yens with a futures contract, which will be settled in December 2015. The contract price is ($/) 0.0098. (1) If the exchange rate on the settlement date in December is ($/) 0.0095, what should the company do as required by the settlement procedure for the futures contracts? Describe as much in detail as possible. (2) Suppose that in addition to the futures contract stated above, B.J. International also has 1 million receivables that will be paid on the date that coincides with the settlement date in December. Fill out the following table on possible future outcomes at the settlement date in December for B.J International.

Possible spot rate of Japanese yen on the settlement date in December	(1) The amount to pay (with negative sign) or get paid (with positive sign) for the settlement of 1 million futures contract	(2) The $ payment from 1 million receivables	(3) The net $ payment from 1 million receivables combined with the settlement of futures contract ((3) = (1) + (2))
($/) 0.0092
($/) 0.0103
($/) 0.0114