I'm looking for answer to question 31:

#31. Between the option, forward and money market hedges which is the best? a. Option hedge b. Forward hedge c. Money market hedge d. It is not in their best interests to hedge

PS the rest of the questions have been posted if someone wants to go back and work it all out

Use the following information for Questions #27 to #31: The West Virginia coal coalition sold four cargo shipments to India to assist with energy requirements in rebuilding Nepal post the Spring 2015 earthquake. The first contract required a 2 million pound payment due in three months. Current spot exchange rate: 1.2788/$ 3-month forward exchange rate : 1.4670/$ 3-month put premium on UK pounds: $ 0.03 / E 3-month put option on UK pounds: $0.75 / Current 3-month U.S. interest rate: 3.1 % Current 3-month U.K. interest rate: 4.2 % 27. Calculate the guaranteed dollar proceeds from the sale if your coalition hedges using a forward contract. a. $ 1,363,326.52 b. $1,563,966.22 c. $ 2,934,000.00 d. $ 1,919,385.80 28. To hedge with a money market instrument, what would be the actions taken? a. Borrow the PV of the receivable at the US interest rate, exchange dollars for pounds and invest the pounds at the UK interest rate. b. Borrow the pound receivable at the US interest rate and invest it at the UK interest rate, exchange the pound for dollars. c. Borrow the PV of the pound receivable at the UK interest rate, exchange pounds for dollars at the current spot rate and invest the dollars at the US interest rate. d. Lend dollars at the US interest rate and exchange dollars for pounds in three months. 29. What would the guaranteed dollar proceeds from the sale be using a money market hedge (this is the value at t=3 months)? a. $1,547,456.02 b. $1,363,326.52 c. $1,500,927.27 d. $ 1,919,385.80 Use the following information for Questions #27 to #31: The West Virginia coal coalition sold four cargo shipments to India to assist with energy requirements in rebuilding Nepal post the Spring 2015 earthquake. The first contract required a 2 million pound payment due in three months. Current spot exchange rate: 1.2788/$ 3-month forward exchange rate : 1.4670/$ 3-month put premium on UK pounds: $ 0.03 / E 3-month put option on UK pounds: $0.75 / Current 3-month U.S. interest rate: 3.1 % Current 3-month U.K. interest rate: 4.2 % 27. Calculate the guaranteed dollar proceeds from the sale if your coalition hedges using a forward contract. a. $ 1,363,326.52 b. $1,563,966.22 c. $ 2,934,000.00 d. $ 1,919,385.80 28. To hedge with a money market instrument, what would be the actions taken? a. Borrow the PV of the receivable at the US interest rate, exchange dollars for pounds and invest the pounds at the UK interest rate. b. Borrow the pound receivable at the US interest rate and invest it at the UK interest rate, exchange the pound for dollars. c. Borrow the PV of the pound receivable at the UK interest rate, exchange pounds for dollars at the current spot rate and invest the dollars at the US interest rate. d. Lend dollars at the US interest rate and exchange dollars for pounds in three months. 29. What would the guaranteed dollar proceeds from the sale be using a money market hedge (this is the value at t=3 months)? a. $1,547,456.02 b. $1,363,326.52 c. $1,500,927.27 d. $ 1,919,385.80