10. Insane Horror has a 1 million debt that it expects to repay in one year. Suppose the interest rate on pounds is 1.1% (annualized). How could Insane Horror protect this payable using a money market hedge? a. borrow 1 million pounds today- b. borrow 909,090.91 pounds today borrow 989,119.68 pounds today d. lend 1 million pounds today! lend 909,090.91 pounds today f. lend 989,119.68 pounds today c. e. 11. The Economist Intelligence Unit has recently published projected inflation rates for the United States and India for the next five years. U.S. inflation is expected to be 2% per year, and inflation in India is expected to be 5% per year. If the current exchange rate is INR67.78/$, what should the exchange rate be 5 years from now? a. $78.35/INR b. $69.77/INR c. $0.01276/INR d. $0.01433/INR e. $0.01519/INR f. $0.01705/INR 12. In December 2014, the one-year interest rate was 1% on British pounds and 0.8% on U.S. dollars. The spot exchange rate was, at that time, $1.5593/. According to the international Fisher effect, what is the expected future exchange rate in one year? a. $1.5562/ b. $1.5624/ c. $0.6426/