Question: Question 9 Please use the following information to answer the next question: A US firm's Accounts Receivables (from UK) due in 1 year is:

Question 9 Please use the following information to answer the next question:

Question 9 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: 1-year Forward rate for GBP is: 8% $1.91 If the firm uses a MONEY MARKET HEDGE, one year from now, their accounts receivables will give them: USD 5,000,000 USD 9,259,259 USD 9,550,000 O USD 9,722,222 7.5 pts

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