Your firm is a U.K.-based exporter of bicycles.You have sold an order to a Swiss firm for SFr.1,000,000 worth of bicycles.Payment from the Swiss firm (in Swiss francs) 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 Swiss franc futures contracts; and long 50 12-month pound futures contracts.
B) Go long 100 12-month Swiss franc futures contracts; and short 50 12-month pound futures contracts.
C) Go short 100 12-month Swiss franc futures contracts; and short 50 12-month pound futures contracts.
D) Go long 100 12-month Swiss franc futures contracts; and long 50 12-month pound futures contracts.
E) None of the above
Correct Answer:
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