GED Corporation, located in the United States, has an accounts payable obligation of $800$ million payable in one year to a bank in Tokyo. The current spot rate is $\frac{115}{\text{\$}}1\mathrm{.}00$ and the one year forward rate is $\frac{110}{\text{\$}}1\mathrm{.}00.$ The annual interest rate is $3$ percent in Japan and $6$ percent in the United States. GED can also buy a one$-$year call option on yen at the strike price of $$0\mathrm{.}0080$ per yen for a premium of $0\mathrm{.}010$ cent per yen.

The future dollar cost of meeting this obligation using the forward hedge is

$$6,450,000.$

$$8,800,000.$

$$6,653,833.$

$$7,272,727.$