The ABC Sports Company receives British pounds each month as payment for the footballs that it exports. It anticipates that the pound will depreciate over time against the Australian dollar. How can the ABC Sports Company use currency options to hedge against exchange rate risk? Jack Smith, owner of the ABC Sports Company, is concerned that the pound may depreciate substantially over the next month, but he also believes that the pound could appreciate substantially if specific situations occur. Should Jack use currency futures or currency options to hedge the exchange rate risk? Is there any disadvantage of selecting this method for hedging?