Wright pic Wright) is in the process of negotiating an order worth $1.4 million with a large US retaller on six months credit, if successful, then will be the first time that weight has sold goods into the highly competitive US market. Wright currently considering three athematives for managing its transaction risk should the order be finalisunt 1. The company's marketing director has suggested that in order to remove transactions completely, Wright should invoice the US firm in sterling, using the cament S/E spot rate to calculate the invoice amount. 2 The chief executive has doubts about this proposal and as an alternative has suggested invoicing the US firm in dollars and using a forward exchange contract to hedge Wright's transaction risk 3 Finally, whilst the finance director agrees that the US firm should be invoiced in dollars, the believes that Wright should use sufficient six month sterling futures contracts to the nearest whole number) to hedge its transaction risk The following market data is currently available The cument spot rate 51.8960-18970/ The six month forward premium is currently 1.20-1.10 cents The six-month futures contract in currently trading at $1.8943/ The six-month futures contract size is 62,500- It can