Suppose we are in December 30, 2014, and a German company expects to make a payment of 1,700 million dollars to a US supplier one year from now. Which of the following best describes the position that the German company should take in currency forwards if it wants to hedge currency risk?

Questions 2 and 3 are based on the following data on forward contracts from December 30, 2014 (Financial Times).

Suppose we are in December 30, 2014, and a German company expects to make a payment of 1,700 million dollars to a US supplier one year from now. Which of the following best describes the position that the German company should take in currency forwards if it wants to hedge currency risk?