ABC Inc., a US importer of European products wishes to devise a hedge of a 32 million Thai Bhat (Bt) liability, expected to come due within the next 3 months. ABC's financial experts suggest that this exposure can be hedged using different combinations of € (Euro), CHF (Swiss Franc), ¥ (Yen) and £ (British pound) futures contracts. They presented the following results of their analysis to the CFO: ΔS$/Bt = 0.03 + 0.95 Δf $/CHF + 2.55 Δf $/¥ [t=1.34] [t=7.50] [t=2.73] R2=0.87 ΔS$/Bt = 0.03 + 0.47 Δf $/€ - 1.55 Δf $/£ [t=1.31] [t=12.50] [t=1.41] R2=0.83 Upon seeing the above, the CFO got confused and did not know what to do. All he remembered is that the size of the €, CHF, ¥, and £ futures contracts is 100,000 €, 125,000 CHF, 12,500,000 ¥ and 62,500 £, respectively. Can you help him devise the hedge? How many contracts does ABC need to buy/sell if its primary goal is to reduce the exposure as much as possible?