Blades Inc., US firm has agreed to sell its product to Regency, EU firm and payment is Euro 2 million. Blades Inc has agreement that the amount will be paid in 30 days. Blades Inc wants to avoid the FX risk by using the US and EU money market.

Following information is available to Blades Inc.Current sport rate = $1.15/euroEU borrowing rate = 8% annual rateUS investing rate = 6% annual rateExplain how Blades Inc can conduct money market hedge?

A. Borrow euro 1,986,689.18 from a Bank in Europe

B. Borrow euro 1,990,050 from a Bank in US

C. Borrow euro 1,851,851.85 from a Bank in Europe

D. Borrow euro 1,886,792.45 from a Bank in US