A Japanese electronics firm purchases capital equipment from a U. S. firm for USD 5,000. Payment is due in 120 days. Spot USDJPY equals 105. The Japanese firm fears that the USD will strengthen in the near future and wishes to insure against this by purchasing USD call options with a strike price of JPY 105. The premium is JPY 3. Analysts forecasts of USD calls for a USDJPY rate of either 100 or 120 in 120 days. Assume equal probability. Use a JPY TIBOR rate of 2.4 percent (actual/ 360) to factor in the financing cost of options in your calculations. What is the cost in JPY if the USDJPY is 120?