1. Business
  2. Finance
  3. which one is the correct answer please be sure...

Question: which one is the correct answer please be sure...

Question details



Assume the following information to calculate the dollar cost of using a money market hedge to hedge 200,000 pounds of payables due in 180 days. Assume the firm has no excess cash. Assume the spot rate of the pound is $2.02, the 180-day forward rate is $2.00. The British interest rate is 5%, and the US interest rate is 4% over the 180-day period. a $388,210 O b s387.900 O c $391.210 o d s396,190 Which one is the correct answer please be sure
Solution by an expert tutor
Blurred Solution
This question has been solved
Subscribe to see this solution