Your business is based in London. In six months time, you are due to receive money from a customer based in Australia who will pay you in AUD.

Conscious of exchange-rate volatility, you decide to hedge your exposure.

Which forward position will achieve the desired hedge?

Select one:

A short forward position to sell AUD for GBP.

A long forward position to buy AUD using GBP.

A short forward position to sell GBP for AUD.