Maria Gonzalez and Ganado. Ganadothe U$.$S$.-$based company discussed in this chapterhas concluded another large sale of telecommunications equipment to Regency $($U$.$K$.).$ Total payment of $3,700,000$ is due in $90$ days. Maria Gonzalez has also learned that Ganado will only be able to borrow in the United Kingdom at $14\mathrm{.}618\%$ per annum $($due to credit concerns of the British banks$).$ Given the exchange rates and interest rates in the popup window, $($Pic bellow$),$ 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 $$1\mathrm{.}7695/?$ The $90-$day forward rate of $$1\mathrm{.}7534/?$ The expected spot rate of $$1\mathrm{.}7952/?$

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?