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

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 Receivables (from UK) due in 1 year is: 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: $1.91 Based on the given information, the firm should use a: money market hedge O forward hedge

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