Question: Please use information to answer the question below: A US firm's expected Accounts Payable in UK due in 1 year Current Spot Rate (SR)

Please use information to answer the question below: A US firm's expected Accounts Payable in UK due in 1 year Current Spot Rate (SR) for GBP 8,000,000 GBP USD 1.50 Annual interest rate in US (Rh) 5% Annual interest rate in UK (Rf) 8% If the I-year Forward rate for GBP is $1.43, then based on all information given above, the firm should: use a money market hedge O use a forward hedge

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