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 $ Equivalent	Currency Per US$	Interet rates
10,000 pound	brittain	1.96	.5102 pound
	12 months forward	2	.5 pound
10,000 Euro	Euro	1.56	.6410 euro	i$=1%
	12 months forward	1.6	.6250 euro	iEuro = 2%
10,000 swiss franc	Swiss Franc	0.92	1.0870 SFr	Ipound = 3%
	12 months forward	1	1 SFr	iSFr = 4%

Explain each transaction in detail tell me exactly what is being done. Calculate the cash flow from the SFr. 1,000,000 to the firm after the money market hedge.