Question 6. An Australian company owns an amount of GBP400,000, due in one month. The current spot and one-month forward rates are 3.70 and 3.75, respectively. Q6-a If the company chooses to hedge its position, what is the domestic currency value of payables? 2.5 marks) I B Save Unanswered Q6-b Assuming that the Australian and British one-month interest rates are 8% and 4% per annum, respectively. What is the process constituting a money market hedge of GBP payables (or the Australian dollar amount borrowed at the present time)? (2.5 marks)