- Pariba in Paris offers a loan in Euros at 4%; current spot rate of EUR is EUR/USD1.1210; 1 year forward rate available at F=EUR/USD 1.1125 Nippon Bank, Tokyo offers a loan in JPY at 1%; current spot rate of JPY is S=USDJPY120 a 1 year forward rate available at F=USD/JPY115 - Banco Itau, Sao Paolo offers a loan in BRL at 8%; current spot rate of BRL is S=USD/BRL3.90; a 1-year forward rate available at F=USD/BRL4.1 Assuming that all banks and forward contracts are equally safe; where should the US MNC borrow? [To make the decision, calculate the dollar cost of borrowing in Paris, Tokyo and Sao Paolo and compare with the NY rate; choose the lowest cost of borrowing] a) Paris b) Tokyo c) Sao Paolo d) New York