Goran plc is a UK company with export and import trade with the USA. The following transactions, in the currency specified, are due within the next six months:
Purchases of goods, cash payment due in three months.................................£116,000
Sale of finished goods, cash receipt due in three months................................$197,000
Purchase of goods, cash payment due in six months.....................................$447,000
Data relating to exchange rates and interest rates are as follows:

(a) Discuss four techniques that Goran might use to hedge against the foreign exchange risk involved in foreign trade.
(b) Calculate the net sterling receipts/payments that Goran might expect for both its three-month and six-month transactions if the company hedges foreign exchange risk using (i) the forward market and (ii) the money market.

Exchange rates: Spot Three months forward Six months forward S/E 1.7106-1.7140 1.7024-1.7063 1.6967-1.7006 Interest rates Sterling Dollars Borrow 12.5% 9.0% Deposit 9.5% 6.0%