Assume you are American and anticipate paying 50M SWF in 12-months' time associated with the purchase of equipment manufactured in Berne (Switzerland). The spot rate for SWF is 1.0130-90 USD/SWF and the swap rates for 12 months are -30 to -20. The annual lending and borrowing rates for USD and SWF are respectively 1.05% to 1.40% and 1.60% to 1.95% annually. If you hedge in the FORWARD markets, in USD, your cost TODAY will be: (I accept rounding errors)