Question: Dear Tutor can you please explain how we get the answer C for the below question? I appreciate your help in advance Dell Computer has

Dear Tutor can you please explain how we get the answer C for the below question? I appreciate your help in advance

Dell Computer has a 1 million receivable that it expects to collect in one year. Suppose the interest rate on pounds is 15%. How could Dell protect this receivable using a money market hedge? a) borrow 1 million pounds today b) lend 1 million pounds today c) borrow 869,565 pounds today d) lend 986,754 pounds today Ans: c

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