16. A U.K-based exporter has accepted an order from an Italiar firm for e1,000,000 worth of ducts. Payment is denominated in the euro(e) and will be due in 12 months forward exchange rates and the annual percentage rates of interest (APR) are: t and Contract U.S. S equiv. Curreney per U.S. S Size Country 10,000 Britain (Pound $1.9600 $2.0000 $1.5600 $1.6000 $0.9200 $1.0000 E0.5102 0.5000 0.6410 interest APR 12 Months Forward 12 Months Forward 12 Months Forward rates 10,000 Euro = 190 i.-2% i,-3% SFr. 10,000 Swiss Franc 70 Fr. 1.0000 a) Describe a money market hedge strategy to redenominate this one-year receivable into a pound-denominated receivable with a one-year maturity. Make sure to include in description of each step of transaction: the type of contract to trade (forward or spot, in what currency denominations); . the size of contract to trade; 1000 00 0 the position of trade (borrow or lend, buy or sell). saad your b) What is the amount of British pound the company will get at the end of the 12-month period