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K-Roo Ltd's US subsidiary is expecting to receive AUD 3010 in 9 months from sales to an Australian customer. K-Roo wants to use a money

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K-Roo Ltd's US subsidiary is expecting to receive AUD 3010 in 9 months from sales to an Australian customer. K-Roo wants to use a money market hedge to lock in the USD value of the receivable. It observes the following interest and exchange rates: Annualized US 9-month interest rates: 1.4%-1.2% Annualized Australian 9-month interest rates: 8%-7.9% Spot USD/AUD rate: USD2.5/AUD. What is the USD value of this receivable using a money market hedge? a. 7905.3518 b. 7162.9481 c. 7893.6170 d. 1264.8563 e. 2865.1792

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