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Use the following information to calculate the dollar cost of using a money market hedge to hedge 350,000 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 350,000 pounds of payables due in 180 days. Assume the firm has no excess cash. Assume the spot rate of the pound is $0.92, the 180-day forward rate is $0.90, The British interest rate is 5%, and the U.S. Interest rate is 4% over the 180-day period. W Select one: a $665,600 b. $950,857 Oc$570,514 d. $318.933

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