The current spot rate is GBP 0.5024/USD. The three-month forward rate is GBP 0.5040/USD. The TE Company expects a payment of GBP 100 million in three months. If the firm hedges this transaction in the forward market, what is the USD amount it will receive in three months?
A) USD 198.41 million
B) USD 199.04 million
C) USD 50.40 million
D) USD 50.24 million
Correct Answer:
Verified
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