Problem 4 Dollar costs ($) EXHIBIT 8.10 Dollar Costs of Securing the Pound Payable: Alternative Hedging Strategies $9,095,400 $8,957,747 $8,750,000 Option hedge Money market hedge Forward hedge $95,400 0 ST ST* = $1.731 E = $1.80 Replicate the graph with 3 lines shown in the exhibit above. In doing so, use the same data in the textbook. a. In column A, you create future spot exchange rates ranging from 0 to 3.00 with an increment of 0.10. b. In column B, you show the dollar amounts you pay for your accounts payable using a forward contract. c. In column C, you show the dollar costs you pay for your accounts payable using a money market hedge.