Assume that VN Co. has net payables of 200,000 in 60 days. The UK interests

rate is 2 percent over 60 days, and the spot rate of the British Pound is $ 1.30. The US interest

rate is 3 percent over 60 days. Suggest whether the U.S. firm should implement a money

market hedge or enter a forward contract or purchase an option to hedge the payable. The

relevant 60-day forward rate is $1.34. The option has a strike price of $1.32 and a premium of

$ 0.025. Also calculate the implied exchange rate. Please show the necessary calculations.