Question: Please use the following information to answer the next question: A US firm's Accounts Payables (in UK) due in 1 year GBP 5,000,000 Current

Please use the following information to answer the next question: A US

Please use the following information to answer the next question: A US firm's Accounts Payables (in UK) due in 1 year GBP 5,000,000 Current Spot rate for GBP is $2.00 Annual interest rate in US is 5% Annual interest rate in UK is 8% I-year Forward rate for GBP is $1.98 Based on the given information, the firm should use a: O money market hedge O forward hedge

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