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Question 2 (1 point) Use the following information to calculate the dollar cost of using a money market hedge to hedge 215,000 pounds of payables

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Question 2 (1 point) Use the following information to calculate the dollar cost of using a money market hedge to hedge 215,000 pounds of payables due in 180 days. Assume the firm has no excess cash. Assume the spot rate of the pound is $2.05 and the 180-day forward rate is $2.00. The British interest rate is 0.04, and the U.S. interest rate is 0.03 over the 180-day period

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