You are a multinational company headquartered in the United States. Your plan involves importing goods from Europe in 6 months, necessitating 500,000 Euros. Concerned about potential exchange rate fluctuations between the US dollar (USD) and the euro (EUR), you intend to hedge your forex risk by employing futures contracts. Each forex futures contract corresponds to 125,000. The current spot exchange rate stands at 1 EUR = 1.0975 USD, while the futures price for a 6-month contract is set at 1 EUR = 1.1035 USD.

Part I.

To hedge your entire import transaction using a hedge ratio of 0.75, determine the number of forex futures contracts required. Please present your calculations.