A merchant in the UK has agreed to sell goods to an importer in the USA at an invoiced price of $150,000. Of this amount, $60,000 will be payable on shipment. $45,000 one month after shipment and $45,000 three months after shipment. The quoted foreign exchange rates ($ per ) at the date of shipment are as follows:- Spot One month Three month 1.690 - 1.692 0.30 - 0.20 cents premium 1.0 - 0.80 cents premium The merchant decides to enter into appropriate forward exchange contracts through his bank to hedge these transactions. Calculate the sterling amount that the merchant will receive. (8 marks)