Your firm is a U.K.-based importer of bicycles. You have placed an order with a Swiss firm for SFr. 1,000,000 worth of bicycles. Payment (in Swiss francs) 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	US$ equiv	currency per US$	Interest APR Rates
10,000	pound 12 mth forward	$1.9600 $2.0000	0.5102 0.5000	i$ = 1% i = 3%
10,000	euro 12 mth forward	$1.5600 $1.6000	0.6410 0.6250	i = 2%
SFr 10,000	SFr 12 mth forward	$0.9200 $1.0000	SFr1.0870 SFr1.0000	iSFr = 4%

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

A) 500,000

B) 464,874.41

C) 446,730.77

D) 509,900.99