Hutton plc, a UK business, is due to receive €800,000 in four months’ time for goods supplied to a Spanish customer. The business has decided to use a money market hedge to manage currency risk. The following information concerning borrowing rates is available:

The spot rate is £1 = €1.1490 - 1.1520.
Using the money market approach, what is the £ sterling value of the amount that Hutton plc will have to borrow now in order to match the receipt?

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Country Spain UK Borrowing rate per year 6% 4%