Use the following information to calculate the pound cost of using a money market hedge to hedge $200,000 of payables due in 360 days. Assume the firm has no excess cash. Assume the spot rate of the dollar is £0.55, the 360-day forward rate is £0.54. The British interest rate is 5%, and the US interest rate is 4% over the 360-day period.
A) £191,210
B) £196,190
C) £188,210
D) £184,761
E) None of the above

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The Answer of Use the following information to calculate the pound cost of using a money market hedge to hedge $200,000 of payables due in 360 days. Assume the firm has no excess cash. Assume the spot rate of the dollar is £0.55, the 360-day forward rate is £0.54. The British interest rate is 5%, and the US interest rate is 4% over the 360-day period.
A) £191,210
B) £196,190
C) £188,210
D) £184,761
E) None of the above

Use the Following Information to Calculate the Pound Cost of Using