Your firm is a US$-$based exporter of motorcycles. You have sold an order to a French firm for $1$ million worth of motorcycles. Payment from the French firm $($in euros$)$ is due in three months. Detail a strategy using futures contracts that will hedge your exchange rate risk. Have an estimate of how many contracts of what type and how much $($in US$$)$ your firm will receive.

$3-$month futures exchange rate: $$1\mathrm{.}15/$

Contract size: $125,000$ per futures contract

Group of answer choices

Go short eight $3-$month euro futures contracts; deliver $1$ m and receive $$869,565\mathrm{.}20$ at maturity of the futures contracts.

Go long eight $3-$month euro futures contracts; deliver $869,565\mathrm{.}20$ and receive $$1$ million.

Go short eight $3-$month euro futures contracts; deliver $1$ m and receive $$1,150,000$ at maturity of the futures contracts.

Go long eight $3-$month euro futures contracts; deliver $1$ m and receive $$1,150,000$ at maturity of the futures contracts.