1. A NY based trading company just signed a contract to purchase 10,000 pieces of swimwear from Honduras for delivery a year later. Each swim suit costs 50 lempira.

   The company buys a forward contract from HSBC to convert 500,000 lempira a year later at the strike price of 25 lempira for 1 dollar and HSBC charges a fee of 0.25 cents (quarter of a US cent) per lempira for the contract. What is the total cost of these swimsuits to this trading company in US dollars?

   		$21,250
   		$44,000
   		$200,000
   		$400, 000