Suppose you receive 2,500,000 British Pounds (not Euros) today and plan to convert into US dollars early next February. Which is the correct action to take today in order to hedge against GBP exchange rate risk?
Short 20 British Pounds futures contracts expiring in February
Long 20 British Pounds futures contracts expiring in March
Short 40 British Pounds futures contracts expiring in March
Long 40 British Pounds futures contracts expiring in February