1-B USAcorp. will receive 4,000,000 Pounds (P) in 216 days ( = .60 yr) from a British customer. USAcorp wants to hedge exchange rate risk on the future US$ value when converting to US$. Spot rate today is $1.37/P ANNUAL deposit (investing) rate is: Europe = 5.0% ; USA = 2.8% ANNUAL borrowing rate is: Europe = 6.2%; USA = 4,0% B) $ 10pts MONEY MARKET hedge amount for USAcorp SEE PAGE-2 SWAP