On June 15, a US firm is planningto import Mexican caviar worth Pesos 2 milliondue on July 15 (one month later). The firm decides to hedge its payables position by using September peso futures. The spot rate on June 15 is US$ 0.0630 / peso and the September futures price on June 15 is at $0.0665 per peso. One month late on July 15, the spot rate is $0.0570 / peso while the September futures price is $0.0615 / peso. Assume contract size is 2 million pesos.

What is the total net cost of APs in US $ to the U.S. importer?

a.$104,000

b.None of the other answers

c.$145,000

d.$124,000