Question:
The Superbowl Champs, New York Giants plans to play in the United Kingdom next year. All expenses will be paid by the British government and the Giants will receive a check for $1million pounds. The team anticipates that the pound will depreciate substantially by the scheduled game date. The NFL's approval will not occur for three months.
How can the team hedge it position? What is there to lose by waiting three months to see if the exhibition game is approved before hedging?