Question 4 please

Remaining Time: 1 hour, 11 minutes, 24 seconds. Question Completion Status: -8.20% QUESTION 4 Larado Corp. frequently uses a forward hedge to hedge its British pound () payables. For the next quarter. Larado has identified its net exposure to the pound as being 1,000,000. The 90-day forward rate is $1.40. Furthermore, Larado's financial center has indicated that the possible values of the British pound at the end of next quarter are $1.47 and $1.48, with probabilities of .50 and 50, respectively. Based on this information, what is the expected real cost of hedging payables? $80,000 -$80,000 $75,000 -$75,000 QUESTION 5 Assume the following information: 180-day U.S. interest rate -8% 180-day British interest rate -9% 180-day forward rate of British pound - $1.50 Spot rate of British pound - $1.48