Assume the following information:
180-day U.S. interest rate .............. 8%
180-day British interest rate............. 9%
180-day forward rate of British pound.......... $1.50
Spot rate of British pound .............. $1.48
Assume that Riverside Corp. from the United States will receive 400,000 pounds in 180 days. Would it be better off using a forward hedge or a money market hedge? Substantiate your answer with estimated revenue for each type of hedge.