Maria Gonzalez and Ganado. Ganado$-$the U$.$S$.-$based company discussed in this chapter$-$has concluded another large sale of telecommunications equipment to Regency $($U$.$K$.).$ Total payment of $4,000,000$ is due in $90$ days. Maria Gonzalez has also learned that Ganado will only be able to borrow in the United Kingdom at $13\mathrm{.}425\%$ per annum $($due to credit concerns of the British banks$).$ Given the exchange rates and interest rates in the popup window, $,$ compare alternate ways below that Ganado might hedge its foreign exchange transaction exposure. Assume a $360-$day financial year.

a$.$ How much in U$.$S$.$ dollars will Ganado receive in $90$ days without a hedge if the expected spot rate in $90$ days is the same as the current spot rate of $$\frac{1\mathrm{.}7551}{}?$ The $90-$day forward rate of $$\frac{1\mathrm{.}7413}{}?$ The expected spot rate of $$\frac{1\mathrm{.}7935}{}?$

b$.$ How much in U$.$S$.$ dollars will Ganado receive in $90$ days with a forward market hedge?

c$.$ How much in U$.$S$.$ dollars will Ganado receive in $90$ days with a money market hedge?

d$.$ How much in U$.$S$.$ dollars will Ganado receive in $90$ days with an option market hedge?

e$.$ What transaction exposure hedge is now in Ganado's best interest?

a$.$ How much in U$.$S$.$ dollars will Ganado receive in $90$ days without a hedge if the expected spot rate in $90$ days is the same as the current spot rate of $$\frac{1\mathrm{.}7551}{}?$

$

$($Round to the nearest dollar.$)$

Data table

$\backslash$table$[[$Assumption$,$Value$],[90-$day A$/$R in pounds,$4,000,000$