49. Your firm is a U .K.-based exporter of British bicycles. You have sold an order to an Italian firm for 1,000,000 worth of bicycles. Payment from the Italian firm (in ) is due in twelve months. Your firm wants to hedge the receivable into pounds. Not dollars. Interest rates are 3% in , 2% in S and 4% in E. Cotmtrv Britain I Month 3 Months 6 Months Forwanl 12 Months Month Fotsvanl 3 Months Fotsvanl 6 Months Forward 12 Months equiv. Tuesday Monday 1.6000 1.6100 1.6300 1.6600 1.7200 1.2000 1.2100 1.2300 1.2600 1.2900 16100 1.6300 1.6600 13200 1.8000 1.2000 1.2100 1.2300 1.2600 1.3200 Tuesday 0.625 06211 0.6173 06024 05814 O, 833333 0.82645 0.813008 0.793651 0.775194 per U. S. S omo nday 0.6211 0.6173 0.6024 o '814 O. 833333 0.82645 0.813008 0.793651 0.7575758