Question: Please use information to answer the question below: A US firm's expected Accounts Payable in UK due in 1 year GBP 8,000,000 Current Spot

Please use information to answer the question below: A US firm's expected Accounts Payable in UK due in 1 year GBP 8,000,000 Current Spot Rate (SR) for GBP USD 1.50 Annual interest rate in US (Rh) 5% Annual interest rate in UK (Rf) 8% If the US firm wants to set up a money market hedge for their GBP payables, today it should borrow: O GBP 8,000,000 GBP 5,333,333 O USD 11,111,111 GBP 7,407,407

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