9 Cost of hedging payables. Assume that Suffolk plc negotiated a forward contract to purchase $200 000 in 90 days. The 90-day forward rate was £0.70 to the US dollar. The dollars to be purchased were to be used to purchase US supplies. On the day the dollars were delivered in accordance with the forward contract, the spot rate of the British pound was

£0.69. What was the cost of hedging the payables for this UK firm compared with not hedging?