Assume that Suffolk Co. Negotiated a forward contract to purchase 200,000 British pounds in 90 days. The 90-day forward rate was $1.40 per British pound. The pound to be purchased were to be used to purchase British supplies. On the day the pound were delivered in accordance with the forward contract, the sopt rate of the British pound was $1.44. What was the real cost of hedging the payables for this U.S firm? Did the firm gain or lose by hedging?

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