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what is the correct answer Use the following information to calculate the dollar cost of using a money market hedge to hedge 200,000 British pounds

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Use the following information to calculate the dollar cost of using a money market hedge to hedge 200,000 British 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 180-day forward rate is $2.00. The British interest rate is 5 percent and the U.S. interest rate is 4 percent over the 180-day period. a. $396,190. b. $400,152 O c $388,210 O d. $391,210

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