BP plc is an UK company with export and import trade with the US. The following transactions are due within the next three months. Transactions are in the currency specified. < Purchases of components, cash payment due in three months: $100,000. < Sale of finished goods, cash receipt due in three months: $40,000. < Exchange rates (London market) < Spot Three months forward Six months forward Interest rates Three months or six months Sterling Dollars Required $/ < 1.7106-1.7140 1.7000-1.7080 1.6960-1.6980 Borrowing Lending 12% 8% 9% 6% Calculate the net sterling receipts and payments that BP plc might expect for both its three-month transactions if the company hedges foreign exchange risk on: < (a) The forward foreign exchange market (b) The money market