)XYZ Company will receive 5 million euro from a product sales in Spain in one year.You are concerned about declining Euro vs USD exchange rate over the next 12 months and like to lock in the exchange rate now.Each Euro futures contract is worth 125,000 Euro.The exchange rate currently is 1.10 USD /Euro.A Euro futures contract with one year expiration is at 1.09.You decide to sell the euro futures to hedge the currency risk.One year later, Euro spot rate depreciates to 1.08.