On September 11, a U.S.-based MNC with a

customer in Germany expects to receive

EUR3,000,000. The current spot exchange rate

is 0.4681 USD/EUR. The transfer will occur on

December 10, which happens to coincide with the

expiration of the futures contract. The current

EUR futures price for December delivery is 0.

4732 USD/EUR. The size of the CME futures

contract is EUR125,000. The amount of the initial

margin is $10,000 and the

maintenance margin is

70% of the initial margin

9. On September 11, a U.S.-based MNC with a customer in Germany expects to receive EUR3,000,000. The current spot exchange rate 0.4681 USD/EUR. The transfer will occur on December 10, which happens to coincide with the expiration of the futures contract. The current EUR futures price for December delivery is 0.4732 USD/EUR. The size of the CME futures contract is EUR125,000. The amount of the initial margin is $10,000 and the maintenance margin is 70% of the initial margin. a. How many futures contracts should the U.S. multinational buy or sell in order to hedge this exposure? b. What will happen to the company's position if the EUR appreciates in the futures market to 0.5021 USD/EUR? c. What is the MNC's net profit (or loss) on December 10 if the spot rate on that date is 0.46 USD/EUR? Remember that the spot rate and the futures rate become the same by the delivery date. d. What type of additional risk is the company facing if the transfer is set to occur on November 20, instead of December 10