2. Covent Garden Productions has booked Tony Blair, former Prime Minister of the United Kingdom, to give a dinner speech in New York for a large hedge fund and their clients. Mr. Blair will be paid $100,000 for his talk which is scheduled one year from now. Mr. Blair will be paid on the day of the speech. Mr. Blair's financial advisors want to hedge this USD receivable to eliminate the risk of changes in the USD/GBP exchange rate. These are the exchange rates and interest rates available to Mr. Blair. Bid USD/GBP spot 1.30 i (USD) j(GBP) 2.4% 0.9% 1.32 Ask 1.31 | 3.0% 11.3% 1.33 USD/GBP forward (1 v r. Would you advise Mr. Blair to use a forward rate hedge or a money market hedge? By how much would Mr. Blair be better off by using your recommended approach rather than the alternative. Write down a numerical answer. a. 2. Covent Garden Productions has booked Tony Blair, former Prime Minister of the United Kingdom, to give a dinner speech in New York for a large hedge fund and their clients. Mr. Blair will be paid $100,000 for his talk which is scheduled one year from now. Mr. Blair will be paid on the day of the speech. Mr. Blair's financial advisors want to hedge this USD receivable to eliminate the risk of changes in the USD/GBP exchange rate. These are the exchange rates and interest rates available to Mr. Blair. Bid USD/GBP spot 1.30 i (USD) j(GBP) 2.4% 0.9% 1.32 Ask 1.31 | 3.0% 11.3% 1.33 USD/GBP forward (1 v r. Would you advise Mr. Blair to use a forward rate hedge or a money market hedge? By how much would Mr. Blair be better off by using your recommended approach rather than the alternative. Write down a numerical answer. a