90-day U.S. interest rate 3.5% 90-day Hong Kong interest rate 596 90-day forward rate of Hong Kong dollar (HK$) $0.115 Spot rate of Hong Kong dollar $0.124 Expected spot rate of Hong Kong dollar in 90 days $0.127 Assume that Santa Monica Corporation in the U.S. will need 700,000 Hong Kong dollars in 90 days to cover a payable. What is the cost of implementing a forward hedge? O a. $88,900 b. $86,800 O c. $80,500 . d. None of these choices are correct. Hide Feedback Incorrect 90-day U.S. interest rate 3.5% 90-day Hong Kong interest rate 596 90-day forward rate of Hong Kong dollar (HK$) $0.115 Spot rate of Hong Kong dollar $0.124 Expected spot rate of Hong Kong dollar in 90 days $0.127 Assume that Santa Monica Corporation in the U.S. will need 700,000 Hong Kong dollars in 90 days to cover a payable. What is the cost of implementing a forward hedge? O a. $88,900 b. $86,800 O c. $80,500 . d. None of these choices are correct. Hide Feedback Incorrect