1. A U.S. MNC expects to receive 400,000 British pounds in 90 days. They want to hedge their positions with a money market hedge. The spot rate is $1.5000/ and the borrowing rates are 12% p.a. in the U.S. and 11% p.a. in the UK. How much should they borrow?

   1. 400,000

   2. 388,350

   3. 392,157

   4. $582,524

   5. 185,185