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How much money will Husky Sporting Goods Company have

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Question - A U.S. firm, sells merchandise today to a British company for £100,000. The current exchange rate is $1.38/£, the account is payable in three months, and the firm chooses to hedge by borrowing £98,765.43 today and exchanging the proceeds today for dollars; the loan will be paid back with the £100,000 accounts receivable (money market hedge). If Husky converted the borrowed pounds into dollars today and invested that amount at its WACC of 6% (2% for 90 days), how much money in U.S. dollars will Husky Sporting Goods Company have in 90 days?

Reference no: EM133053432

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