An FI is planning to hedge its one-year, 100 million Swiss franc (SF)-denominated loan against exchange rate

Question:

An FI is planning to hedge its one-year, 100 million Swiss franc (SF)-denominated loan against risk. The current spot rate is $0.60/SF. A 1-year SF futures contract is currently trading at $0.58/SF. SF futures are sold in standardized units of SF125,000.
a. Should the FI be worried about the SF appreciating or depreciating?
b. Should the FI buy or sell futures to hedge against risk exposure?
c. How many futures contracts should the FI buy or sell if a regression of past changes in the spot exchange rates on changes in future exchange rates generates an estimated slope of 1.4?
d. Show exactly how the FI is hedged if it repatriates its principal of SF100 million at year-end, the spot of SF at year-end is $0.55/SF, and the forward is $0.5443/SF.
Exchange Rate
The value of one currency for the purpose of conversion to another. Exchange Rate means on any day, for purposes of determining the Dollar Equivalent of any currency other than Dollars, the rate at which such currency may be exchanged into Dollars...