BL Corporation, located in the United States, has an accounts payable obligation of ¥1750 million payable in six months

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answerhappygod
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BL Corporation, located in the United States, has an accounts payable obligation of ¥1750 million payable in six months

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BL Corporation, located in the United States, has an accounts
payable obligation of ¥1750 million payable in six months to a bank
in Tokyo. The current spot rate is ¥118/$1.00 and the six month
forward rate is ¥109/$1.00. The annual interest rate is 3 percent
in Japan and 6 percent in the United States. What is the future
dollar cost of meeting this obligation using the money market
hedge
a. $14,646,802 b. $7,323,401 c. $15,304,332 d. $15,044,936
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