Question: I would like help on this hedging question please. Thank you! 1. Money Market Hedge on Payables Use the following information to calculate the dollar

I would like help on this hedging question please. Thank you!

1. Money Market Hedge on Payables Use the following information to calculate the dollar cost of using a money market hedge to hedge 300,000 pounds of payables due in 180 days. Assume the firm has no excess cash. Assume the spot rate of the pound is $1.24, and the 180-day forward rate is $1.25. The British interest rate is 3%, and the U.S. interest rate is 4% over the 180 -day period. (round to whole dollars) ( 2 points)

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