Your firm is a Swiss 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.Detail a strategy using futures contracts that will hedge your exchange rate risk.Have an estimate of how many contracts of what type and maturity. 
A) Go short 100 12-month euro futures contracts; and short 160 12-month SFr.futures contracts.
B) Go long 100 12-month € futures contracts; and long 160 12-month SFr.futures contracts.
C) Go long 100 12-month euro futures contracts; and short 160 12-month Swiss Franc futures contracts.
D) Go short 100 12-month euro futures contracts; and long 160 12-month Swiss Franc futures contracts.
E) None of the above
Correct Answer:
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