On November 1, 20X5, US Pelican Company entered into a 90 day forward contract of 200,000 pounds to hedge a commitment to purchase special equipment…

On November 1, 20X5, US Pelican Company entered into a 90 day forward contract of 200,000£ pounds to hedge a commitment to purchase special equipment on February 1, 20X6 from a British firm Raven Inc. Assume Pelican uses a 12% interest rate. The relevant exchange rates are of dollars per pound: