Accounts Receivables from Please use information to answer the question below: A US firm's expected UK...
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Accounts Receivables from Please use information to answer the question below: A US firm's expected UK due in 1 year GBP 8,000,000 Current Spot Rate (SR) for GBP USD 1.50 Annual interest rate in US (Rh) 5% Annual interest rate in UK (Rf) 8% If the US firm wants to set up a money market hedge for their GBP receivables, today it should borrow: GBP 8,000,000 O GBP 5,333,333 O USD 11,111,111 O GBP 7,407,407 Accounts Receivables from Please use information to answer the question below: A US firm's expected UK due in 1 year GBP 8,000,000 Current Spot Rate (SR) for GBP USD 1.50 Annual interest rate in US (Rh) 5% Annual interest rate in UK (Rf) 8% If the US firm wants to set up a money market hedge for their GBP receivables, today it should borrow: GBP 8,000,000 O GBP 5,333,333 O USD 11,111,111 O GBP 7,407,407
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