Your firm is a UK exporter of bicycles. You have sold an order to a French firm for 1,000,000 worth of bicycles. Payment from the French firm (in euro) is due in 12 months. The annual percentage rate in US is 1%.

Country	APR	Contract size	Quote	US equiv.
Britain	3%	62,500	Spot	$1.96
			12m forward	$2.00
EU	5%	125,000	Spot	$1.56
			12m forward	$1.60
Swiss	4%	CHF10,000	Spot	$0.92
			12m forward	$1.00

Using futures hedge, the number of futures contracts are

Select one:

a.

10 euro futures, 16 pound futures

b.

8 euro futures, 13 pound futures

c.

16 euro futures, 8 pound futures

d.

8 euro futures, 10 pound futures