Question: . Boeing imported a Rolls-Royce jet engine for 5 mil payable in one year (10 points) The US interest rate6.00% per annum The UK interest

. Boeing imported a Rolls-Royce jet engine for 5 mil payable in one year (10 points)

The US interest rate6.00% per annum

The UK interest rate 6.50% per annum

The Spot exchange rate$ 1.80/ today

How to utilize the money market tools to hedge the risk of pound exchange one year later?In particular, answer which loan (US or UK) to borrow and to lend?How much is the dollar cost one year later (a number you would know today)? this is a study guide question please explain how to solve please show me your work

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