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19) Your firm is a U.K.-based importer of bicycles. You have placed an order with a Swiss firm for SEx. 1,000,000 worth of bicycles. Payment

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19) Your firm is a U.K.-based importer of bicycles. You have placed an order with a Swiss firm for SEx. 1,000,000 worth of bicycles. Payment (in Swiss francs) is due in 12 months. Use a money market hedge to redenominate this one-year receivable into a euro-denominated receivable with a one-year maturity. Explain each transaction in detail tell me exactly what is being done. Calculate the cash flow from the SEs. 1,000,000 to the firm after the money market hedge. ( 8 points)

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