XYZ Corporation in the US has purchased supplies from a company in the UK and the invoice must be paid in GBP in 3 months time. The amount owed is 5,000,000. We assume that XYZ Corporation can obtain currency from Snoopy Bank and the 3-month forward rate is $1.5532 to 1 GBP. Explain the spot and forward transactions it can enter into in order to settle the money owed for the supplies in 3 months time. Evaluate the forward hedge if the US$ / GBP spot rate in 3 months time is $1.65 or $1.45.