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An American firm is owed A $ 2 , 0 0 0 , 0 0 0 . 0 0 payable in one year. The current

An American firm is owed A$2,000,000.00 payable in one year. The current spot it $1.7500A$. An Australian bank is paying 3.50% on deposits or will lend at 4.50%. A U.S. bank is paying 4.50% or will lend at 8.50%. The firm will hedge this exposure with money market hedging. How much will they get in one year?
(a) $3,349,282.30
(b) $3,500,000.00
(c) $3,797,500.00
(d) $3,633,971.30
(e) None of the above
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