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How to calculate the cost of credit insurance? Account Payable (due in one month): 20 million USD Current exchange rate: 100 Yen monthly interest rate:1%

How to calculate the cost of credit insurance?

Account Payable (due in one month): 20 million USD

Current exchange rate: 100

Yen monthly interest rate:1%

USD monthly interest rate: 3%

one month forward rate: 98

1 month Call Price (yen/USD): 0.8

Default probability: 1%

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