Your firm is a Swiss exporter of bicycles. You have sold an order to a British firm for 1,000,000 worth of bicycles. Payment from the British firm (in pounds sterling) is due in 12 months. Use a money market hedge to redenominate this one-year receivable into a euro-denominated receivable with a one-year maturity.

Contract Size			Country		U.S. $ equiv.						Currency per U.S. $
	10,000			Britain (pound)		$	1.9600						0.5102					interest				APR
				12 months forward		$	2.0000						0.5000					rates
	10,000			Euro		$	1.5600						0.6410						i$		=		1	%
				12 months forward		$	1.6000						0.6250						i		=		2	%
SFr.	10,000			Swiss franc		$	0.9200					SFr.	1.0870						i		=		3	%
				12 months forward		$	1.0000					SFr.	1.0000						iSFr.		=		4	%

The following were computed without rounding. Select the answer closest to yours.

		SFr. 2,000,000
		SFr. 2,151,118.62
		SFr. 2,068,383.28
		SFr. 1,921,941.75