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Can anyone explain this? Show your work please. 9. Suppose that the Treasurer of a U.K. corporation knows that the corporation will pay $100 million

Can anyone explain this? Show your work please.

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9. Suppose that the Treasurer of a U.K. corporation knows that the corporation will pay $100 million in four months and wants to hedge against exchange rate moves How much will the corporation pay, in pounds, if they lock in the delivery price using the forward contract based on the quotes below? 99) Cha Spot/Forwards RITISH POUND arket Type Reqular Bloomberg BGN Pts Ask Spread Outrt Bid Outrt Ask 1.2452 1 1 0 1

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