Troy-Bilt is a manufacturer of snow blowers domiciled in the US.It has recently ordered a supply of small enginesfrom a supplier in Germany.The payment for EUR 10 million is to be made in three months.It would like your assistance to hedge the currency risk.The EUR futures with three months to expiration is currently trading at 1 EUR = USD 1.1267. A currency contract on EUR is set at 125,000 Euros per contract. How many contracts must you trade to protect Troy-Bilt from exchange rate risk?Would you advise them to go long or short? The initial margin on the contract is USD 100,000.What is the return on investment if on closing the exchange rate was I USD = 0.9012 EUR.(10 Points)