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An American firm is owed 3 5 0 , 0 0 0 , 0 0 0 . 0 0 payable in one year. The current

An American firm is owed 350,000,000.00 payable in one year. The current spot is $0.0120. A Japanese bank is paying 1.00% on deposits or will lend at 4.00%. A U.S. bank is paying 4.50% or will lend at 6.50%. The firm would like to hedge this exposure with money market hedging. How much do they need to borrow today?
$4,038,461.54
346,534,653.47
336,538,461.54
$4,158,415.84
None of the alternatives
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