Your firm is an German exporter of auto parts. You have sold an order to a British firm for £2,000,000 worth of auto parts. Payment from the customer (in pounds) is due in 12 months. Use a money market hedge to eliminate your FX risk and determine the amount of euros you will have in one year. Please note that Germany uses EUR (€) as a currency as a member of Eurozone. S = $1.88/£ i£ = 3.5% F = $2.03/£ i$ = 1% S = $1.47/€ i€ = 2.5% F = $1.66/€ The following were computed without rounding. Select the answer closest to yours. A. €2,533,109.86
B. €2,325,236.35
C. €2,253,326.35 D. €2,445,783.13
