You are a U$.$S$.$ MNC$,$ exporter of Auto Parts and have just sent next year's orders.

A receipt of $200M$ is due in one year.

Assume the following:

Spot rate is $1\mathrm{.}60$ USD$/$GBP

$00\mathrm{.}29\mathrm{.}28$

Futures rate is $1\mathrm{.}60$ USD$/$GBP

Futures Contract size is $62,500GBP$

Question $1$:

eBook

Part A: How can you fix the cash inflow in dollars $($futures position$)?$

Part B: What type of currency quote is given above $($direct$/$indirect$)?$

Part C: How many futures contracts should you use to hedge the position?

Question $2$:

Using the graph below, label parts of the graph $($provide answers for $2A-2E,$ where appropriate provide explicit finanical values$)$