IBM (US) is considering the money market hedging strategy to hedge its accounts payable (AP) worth 1 million yen due in 90 days. It has the following information. The 1 year interest rates are: 5% (US) and 1% (Japan). The current spot rate is Yen 78.03 per USD. What would be the dollar value of the AP in 90 days from now assuming a money market hedging strategy?

Question 1 options:

	$81,121
	$12,574
	$12,943
	$11,975