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Use the following information to calculate the dollar cost of using a money market hedge to hedge 300,000 pounds of payables due in 180 days.

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Use the following information to calculate the dollar cost of using a money market hedge to hedge 300,000 pounds of payables due in 180 days. Assume the firm has no excess cash. Assume the spot rate of the pound is $1.92, the 180-day forward rate is $1.90. The British interest rate is 5%, and the U.S. interest rate is 4% over the 180 day period. Select one: a. $384,761 b. $391,210 c. $570,514 d. $950,857

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