BXP Inc., a UK importing firm anticipates an outflow of 186 million Danish Krone (DKK) in 6 months. BXPs managers are worried about the course of the DKK/ exchange rate over the next 6 months and they decide to hedge. The current spot and forward rates are S0=6.1718 DKK/ and Ft=6 months=6.2035 DKK/. BXP can borrow/lend at a -interest rate of 3.57% and a DKK-interest rate of 5.15%. a) How can BXP hedge its position using the forward market? Calculate the 6-month ahead cash flow BXP can lock in with the forward hedge. b) How can BXP hedge its position using the money markets? Calculate the 6-month ahead cash flow BXP can lock in with the money market hedge. c) Why do the two hedges result in different amounts that can be locked in? Which of the two hedges is best for BXP Inc.? Would things be different if BXP was attempting to hedge an inflow of DKK?