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Calculate the lowest USD cost to pay 100,000UKP of payables in 180 days. Assume the firm has no excess cash. The current spot rate of

Calculate the lowest USD cost to pay 100,000UKP of payables in 180 days. Assume the firm has no excess cash. The current spot rate of the UKP is USD 2.01per UKP, and the 180 day forward rate is USD 2.00 per UKP. The USD interest rate is 5% for borrowing, and the UKP interest rate is 4% for deposits. Both of these rate are for 180 days.

What is the lowest USD cost to pay the UKP payable?

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