A U$.$S$.$ firm is receiving $8\mathrm{.}26$m GBP in July. July GBP Futures are available on the Chicago Mercantile Exchange $($CME$)$ and currently trade at $1\mathrm{.}2392$ GBP$/$USD$.$ The contract has an initial margin of $110\%$ of the maintenance margin.

a$)$ Describe the firm$$s FX spot market currency exposure $($long$/$short$,$ size of exposure$)$ before hedging.

b$)$ Describe how this firm would hedge its position using these futures contracts.

c$)$ How many contract positions on the CME should be taken if the goal is to minimise the firm$$s exposure to FX risk?

d$)$ What will be the total initial futures cash flow required $($amount and currency$)?$

e$)$ Assuming that the exposure and contract maturity dates are the same, what is the expected total $($Physical $+$ Hedge$)$ net USD cashflow? $($You may ignore the time value of money and you may assume that the Unbiased Expectations Hypothesis holds$)$