Question: Save Answer Question 8 1 points Questions 8-12 all deal with the same hedging strategy for Lear Corporation The Lear Corporation, headquartered in Southfield, Michigan,

Save Answer Question 8 1 points Questions 8-12 all deal with the same hedging strategy for Lear Corporation "The Lear Corporation, headquartered in Southfield, Michigan, is one of the largest suppliers for the global automotive industry, making products in five major interior systems: seat; instrument panel/cockpit, door and trim, overhead and flooring, and acoustics. Lear will make a payment of 100 M MXN (100 million Mexican pesos) on December 21, 2020 as part of a significant capital investment in one of its facilities in Ciudad Jurez, Mexico. Lear s currency of operation is the USD, therefore, Lear is concerned about the volatility of the dollar- peso exchange rate. You are helping construct a hedge today using futures on the Chicago Mercantile Exchange (CME) where a contract for 500,000 MXN trades. Assume today is in June 2020." Should you initally long or short the futures ? Long la Short

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