On July 2, 1997, a a company is worry about the value of its Yen income over the next few weeks and makes a decision to hedge its risk by taking a position in the futures market. Right now, a futures contract written on the Yen with a maturity of November 1, 1997 has a price of $7.8741/Yen. This contract’s size is 500 Yen per contract. In order to provide sufficient protection, the exporter decides that they need to take a position in 100 contracts.
Should the exporter take a long or short position in the Yen futures contract?
When I consider, I say “short position” but I am not sure. Please tell me and share with me your opinions