1. When the exchange rate of the US dollar against the Swiss franc really falls (the US dollar depreciates) two months later, that is, when Company A in the United States needs to exchange more US dollars for the required Swiss francs, the foreign exchange risk will be manifested as a loss.

2. Hedging: The cost is determined in advance, and the uncertain risk becomes certain.

Buy Swiss francs in the spot market and sell Swiss francs in the futures market.

3. Company A bought 100000 Swiss francs in the spot market at USD/CHF = 1.3778/88. The futures market sold 65,438 Swiss francs at 1.3774 (1.7260).

4. The effect of hedging is that after two months, the gains in the spot market just make up for the losses in the futures market, thus achieving complete hedging.