Your firm is a Swiss importer of bicycles. You have placed an order with a British firm for $1,000,000$ worth of bicycles. Payment $($in pounds sterling$)$ is due in $12$ months. Use a money market hedge to redenominate this one$-$year pound denominated payable into a Swiss franc$-$denominated payable with a one$-$year maturity.Contract SizeCountryU.S$.$ $ equivalentCurrency per U$.$S$.$ $interest rates APR$10,000$Britain $($spot$)$$ $1\mathrm{.}96000\mathrm{.}510210,00012$ months forward$ $2\mathrm{.}00000\mathrm{.}500010,000$Euro$ $1\mathrm{.}56000\mathrm{.}6410$i$$=1\%10,00012$ months forward$ $1\mathrm{.}60000\mathrm{.}6250$i$=2\%$SFr$.10,000$Swiss franc$ $0\mathrm{.}9200$SFr$.1\mathrm{.}0870$i$=3\%$SFr$.10,00012$ months forward$ $1\mathrm{.}0000$SFr$.1\mathrm{.}0000$iSFr.$=4\%$