Intro A British exporter has a 1,000,000 receivable due in one year. Detail a strategy using a money market hedge that will eliminate any exchange rate risk. 1-year rates of interest Borrowing Dollar 4.5 % Euro 5.9 % Pound 5.5 % Lending 4.00 % 5.25 % 4.7 % Spot exchange rates $ 1.26 = 1.00 $ 1.74 = 100 1-year Forward Rates $ 1.2262 = 1.00 $ 1.6500 = \ 100 Part 1 * Attempt 1/10 for 10 pts. With money market hedge, what's the amount of the pound-denominated receivable with a one-year maturity? 0+ decimals Submit Intro A British exporter has a 1,000,000 receivable due in one year. Detail a strategy using a money market hedge that will eliminate any exchange rate risk. 1-year rates of interest Borrowing Dollar 4.5 % Euro 5.9 % Pound 5.5 % Lending 4.00 % 5.25 % 4.7 % Spot exchange rates $ 1.26 = 1.00 $ 1.74 = 100 1-year Forward Rates $ 1.2262 = 1.00 $ 1.6500 = \ 100 Part 1 * Attempt 1/10 for 10 pts. With money market hedge, what's the amount of the pound-denominated receivable with a one-year maturity? 0+ decimals Submit