Suppose you receive 2,500,000 British Pounds (not Euros) today and plan

QUESTION

Suppose you receive 2,500,000 British Pounds (not Euros) today and plan to convert into US dollars early next February. Which is the correct action to take today in order to hedge against GBP exchange rate risk?Short 20 British Pounds futures contracts expiring in FebruaryLong 20 British Pounds futures contracts expiring in MarchShort 40 British Pounds futures contracts expiring in MarchLong 40 British Pounds futures contracts expiring in February

ANSWER

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