Qn about ETF and futures hedging strategy

A

afx111

Hi guys,

Thinking of possibility in arb opportunity in SPDR gold ETF in Japan...

1) Long SPDR Gold ETF in Japan: ~11500 * 1030 = 11,845,000 JPY
2) Short the Gold Futures in CME: ~1500 * 100 = 150000 USD

assuming JPYUSD ~ 0.0124, contract size is 12,500,000 JPY

my question is what is my effective FX exposure and how many JPYUSD contracts should i hedge myself against currency risk????

thanks!
 
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