Forward versus Money Market Hedge on Receivables 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.