Suppose that Texas Instruments (TI) must pay a French supplier 10 million in 90 days. Which of the following statements is not correct if TI would like to fully hedge its FX risk?

Question 16 options:

a)Given a contract size of 62,500, TI can buy 160 options contracts to fully hedge its payable

b)TI can buy 160 futures contracts (with the size of 62500 each contract) and 80 options contracts (with the size of 125,000 each contract) to fully hedge its payable

c)Given a contract size of 125,000, TI can buy 80 futures contracts to fully hedge its payable

d)TI can buy 80 futures contracts (with the size of 62500 each contract) and 160 options contracts (with the size of 125,000 each contract) to fully hedge its payable