BioTron Medical is a US based, medical devise company. A current customer, Numata of Japan, makes monthly purchases of JPY 125,000,000. BioTron offers payment terms of 30 days. Numata only purchases on a monthly basis and does not make purchases ahead. Numata's CFO has approached BioTron with a proposal to pay cash in yen immediately if offered a 2.5% discount. The CFO of BioTron is considering Numata's proposal or simply covering the yen payments with forward contracts. The CFO of BioTron takes note of the following market data: Spot Rate: JPY 111.40/$ 30 Day Forward Rate: JPY 111.00/$ 90 Day Forward Rate: JPY 110.40/$ Numata's WACC =7% BioTron's WACC =6% Based upon the above information, what is the forward rate premium or discount? (Round to a percentage with 2 decimal places.) \begin{tabular}{l} \hline0.36% \\ \hline2.5% \\ \hline0.50% \\ \hline1.36% \end{tabular} BioTron Medical is a US based, medical devise company. A current customer, Numata of Japan, makes monthly purchases of JPY 125,000,000. BioTron offers payment terms of 30 days. Numata only purchases on a monthly basis and does not make purchases ahead. Numata's CFO has approached BioTron with a proposal to pay cash in yen immediately if offered a 2.5% discount. The CFO of BioTron is considering Numata's proposal or simply covering the yen payments with forward contracts. The CFO of BioTron takes note of the following market data: Spot Rate: JPY 128.40/\$ 30 Day Forward Rate: JPY 130.00/$ 90 Day Forward Rate: JPY 131.40/$ Numata's WACC =7% BioTron's WACC =6% Based upon the above data (note the spot and forward rate are different from the prior questions), which option should the BioTron CFO choose based upon the hedged cost today: hedge using a forward contract or take the payment immediately with a 2.5% discount? Hedge using a forward contract and receive $956,755 Hedge using a forward contract and receive $968,755 Accept Payment with Numata's discount and receive $949,182 Accept Payment with Numata's discount and receive $955,668