Bellamys, an Australian diary company, needs to pay 200,000 to one of its UK business partners in one months time. Its expected that is going to appreciate next month. Should Bellamys buy or sell forward contract on ? Given the below forward rate information, what is the hedged cost of Bellamys payable using the forward market hedge? Please select the most suitable answer

	/A$	/A$	C$/$
One-month	1.65	5.50	1.35
Two-month	1.70	5.45	1.30
Three-month	1.75	5.35	1.25

	a.	Sell forward contract. The hedged cost is A$ 153,846
	b.	Sell forward contract. The hedged cost is A$ 121,212
	c.	Buy forward contract. The hedged cost is A$ 153,846
	d.	Buy forward contract. The hedged cost is A$ 121,212