Question: . When you are converting 100 mil Euros into USD next month, are you buying or selling Euros? To lock the exchange rate in this

. When you are converting 100 mil Euros into USD next month, are you "buying" or "selling" Euros? To lock the exchange rate in this case, should you "long" or "short" Euro FX futures today?

2. What is the contract size (aka. contract unit) of the Euro FX futures contract? Is the British Pound futures contract size the same as Euro FX futures? How many Euro FX futures contracts do you need to long/short today?

(Hint: Go to https://www.cmegroup.com (official futures exchange) and locate the Euro FX futures. Check "Contract Specs" tab.)

The rest of this project will prove whether your answers to Q1/Q2 are the correct hedging strategy. If you don't find a sufficient evidence of lowering risk in Q3-Q10, it's likely that your answers to Q1/Q2 are incorrect.

3. For every trading day (skip holiday/weekends) during the sample period, collect the EUR/USD exchange rate (from either Bloomberg, Google, Fed, etc) and Euro FX futures price (from CME website above).

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