Your firm is a U.K.-based importer of bicycles. You have placed an order with an Italian firm for 1,000,000 worth of bicycles. Payment (in euro) is due in 12 months. Use a money market hedge to redenominate this one-year receivable into a pound-denominated receivable with a one-year maturity.

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

A.	803,721.49

B.

800,000

C.	780,312.13

D.

72,352.94

Show your process.