Sheridan Corp. has just made a sale to a British customer. The sale was for a total value of 149,000 and is to be paid 60 days from now. Sheridan management is concerned that the British pound will depreciate against the U.S. dollar and plans to hedge this risk. The companys bank informs management that the spot rate is $1.2750/ and the 60-day forward rate is $1.2600/.

If Sheridan sells its pounds receivable at the forward rate, what is the dollar value of its receivables? (Round answers to 2 decimal places, e.g. 15.25.)

Value of receivables $__________

If it did not enter into a forward contract and the spot rate 60 days later is $1.2325/, how much would the company lose by not hedging? (Round answers to 2 decimal places, e.g. 15.25.)

Loss incurred by not hedging $____________

Thank you for your time and help.

(please answer both parts as its one question-I feel like I have to mention this as I lose points and I never learn how to solve the second part)