Please use the following information to answer the question below: A US firm's Accounts Payables ( in 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 % -year Forward rate for GBP is $ 1.98 Suppose the firm wants to set up a money market hedge to meet their payables in USD in one year. Today, the firm needs to borrow invest

Please use the following information to answer the question below: Suppose the firm wants to set up a money market hedge to meet their payables in USD in one year. Today, the firm needs to borrow and invest USD 9,722.222: GBP 5,000,000 GBP 4,629,630; USD 9,259,259 USD9,259,259:GBP4,629,630 GBP 5,000,000; USD 9,900,000