Chapter 08 - Management of Transaction Exposure 5.Your firm is a U.K-based exporter of bicycles. You have sold an order to a French firm for 1,000,000 worth of bicycles. Payment from the French firm (in euro) is due in 12 months. Use a money market hedge to redenominate this one-year receivable into a pound-denominated receivable with a one-year maturity Contract Size 10,000 Britain (Pound) U.S. S equiv. Currency per U.S. S $1.9600 S2.0000 S1.5600 S1.6000 S0.9200 $1.0000 E0.5102 E0.5000 0.6410 0.6250 SFr. 1.0870 SFr. 1.0000 interest APR 12 Months Forward 12 Months Forward 12 Months Forward rates /s 190 - 290 10,000 Euro SFr. 10,000 Swiss Franc SFr4% The following were computed without rounding. Select the answer closest to yours A. 803,721.49 B. 800,000 C. 780,312.13 D. 72,352.94 Circle the correct answer above and provide the workings to the answer above here