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Black Thunder (UK) wants to hedge its accounts receivable (AR) worth $1 million due in 1 year. The 1 year interest rates are: 1% (US)

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Black Thunder (UK) wants to hedge its accounts receivable (AR) worth $1 million due in 1 year. The 1 year interest rates are: 1% (US) and .5% (UK). The current spot rate quoted by the bank is $1.31/$1.35 per ?. In 1 year from now, wWhat would be the GBP value of the AR assuming a money market hedge? 737,073.71 990,099.01 740,740.74 $1,01,600

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