Use the following information to calculate the dollar cost of using a money market hedge to hedge 200,000 pounds of payables due in 180 days. Assume the firm has no excess cash. Assume the spot rate of the pound is $2.02 and the 180day forward rate is $2.00. The British interest rate is 5%, and the U.S. interest rate is 4% over the 180day period.

a. $391,210

b. $396,190

c. $388,210

d. $400,152