(4) Consider the following information: 90 day UK interest rate... 90 day forward rate for the pound..................70 Spot rate for the pound...............$1.80 60 day US interest rate. 290 60 day Mexican interest rate 1.5% 60 day forward rate for the Mexican Peso .........0.05 Spot rate for the Mexican Peso...........0.055 (a)Assume that XYZ Co based in the US will receive 400,000 pounds in 90 days, would it be better off using the forward hedge or money market hedge? Substantiate your answer with appropriate quantitative evidence (b)Assume that the same XYZ Co. will need 300,000 Peso in 60 days and wishes to hedge its payables position. Would you recommend a forward hedge or a money market hedge? Explain your answer with relevant quantitative support