Suppose That the Spot Rate and the 90-Day Forward Rate

Multiple Choice

Suppose that the spot rate and the 90-day forward rate on the pound sterling are $1.35 and $1.30,respectively.Your company,wishing to avoid foreign exchange risk,sells £500,000 forward 90 days.Assuming that the spot rate remains the same 90 days hence,your company would

A) receive £500,000 90 days hence
B) receive more than £500,000 in 90 days
C) have been better off not to have sold pounds forward
D) receive nothing