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Your firm is a U.K.-based exporter of Swiss bicycles. You have sold an order with an Italian retailer for euro 750,000 worth of bicycles. Payment (in euro) is due in six months. Your firm wants to hedge the receivable into pounds. a) Detail a strategy using futures contracts that will hedge your exchange rate risk. Have an estimate of how many contracts of what type (long or short on what currency at what price). Write your answer here. b) Outline a strategy using spot exchange rates and borrowing or lending that that will hedge your exchange rate risk. Your answer does not require numbers, it requires a sentence. Write your answer here. Assume interest rates are 3% in euro 6% in $ and 4% in pound, all quoted as an APR. Estimate the pound-denominated future value of the strategy that you offered in part b). Write your answer here. Your firm is a U.K.-based exporter of Swiss bicycles. You have sold an order with an Italian retailer for euro 750,000 worth of bicycles. Payment (in euro) is due in six months. Your firm wants to hedge the receivable into pounds. a) Detail a strategy using futures contracts that will hedge your exchange rate risk. Have an estimate of how many contracts of what type (long or short on what currency at what price). Write your answer here. b) Outline a strategy using spot exchange rates and borrowing or lending that that will hedge your exchange rate risk. Your answer does not require numbers, it requires a sentence. Write your answer here. Assume interest rates are 3% in euro 6% in $ and 4% in pound, all quoted as an APR. Estimate the pound-denominated future value of the strategy that you offered in part b). Write your answer here