This is assuming you intend to fully or partially hedge your position. You can decide to leave the position unhedged.

Please briefly explain the market or economic factors that were the basis for your decision. Remember hedging can be static (fully covered) or dynamic (not fully hedged but requiring monitoring and potentially a series of hedges).

Your firm has a Sterling 4,000,000 account receivable due in 6 months. Based on the above article and the bank research, you need to decide to leave the account receivable fully unhedged, partially hedged or fully hedged. What factors would you consider in your analysis for both the firm and the financial analysis? (The current spot rate is $1.4050/GBP 6 mth Libors are as follows $ 0.20% and GBP 0.08%.)