Define transaction exposure hedge in trident best interest

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Question: Maria Gonzalez and Trident. Trident-the U.S.- based company discussed in this chapter, has concluded a second larger sale of telecommunications equipment to Regency (U.K.). Total payment of £3,000,000 is due in 90 days. Maria Gonzalez has also learned that Trident will only be able to borrow in the United Kingdom at 14% per annum (due to credit concerns of the British banks). Given the following exchange rates and interest rates, what transaction exposure hedge is now in Trident's best interest?

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Reference no: EM131708103

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