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(Data table #1). If you decide to hedge AP in the money market, compute how much USD you will need today to buy DKK needed

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(Data table #1). If you decide to hedge AP in the money market, compute how much USD you will need today to buy DKK needed for the investment.

You source Ice Cubes to sell in the US from an Eskimo village and you owe them 4,000,000 Danish Kronas (DKK), which is due in 60 days. If the currency exchange rates and interest rates are as follows (see Data Table \#1), what is your hedging decision? You have to explore each hedging alternative (by answering questions below) and choose the best one

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