maifl3h.ch11.17 90-day U.S. interest rate 90-day Hong Kong interest rate 3.5% 5% o 90-day forward rate of Hong Kong dollar (HKS) $0.11 O Expected spot rate of Hang Kong dollar in 90 days Spot rate of Hong Kong dollar 0.124 $0.127 o Assume that Santa Monica Corporation in the U.S. will eed 700,.000 tong Kong dollars in go days to cover a puyable. What is the cost of implementing a forward hedge? o a. $80,500 b $86,800 C. $88,900 d. None of these choices are correct esc 2 4 6