2. As an importer of Sake from Japan into the United States, you have agreed to pay 1,000,000 in 90 days after you receive your Sake. You face the following exchange rates and interest rates: spot rate, 121.53/$; 90-day forward rate, 121.38/$; 90-day USD interest rate, 0.28% p.a. (per annum, or the annual interest rate); and 90-day JPY interest rate, 0.10% p.a. (you should assume that there are 360 days in a year, following bond and money market convention; you can convert an annual rate into a 90-day rate using this 90 equation: 10,90 = 0,360 ). 360 a. Describe how this transaction is exposed to exchange rate risk