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Paul Inc. needs 1,160,000 in 30 days. Delaney can earn 0.05 annualized on a German security. The current spot rate for the euro is $1.00.

Paul Inc. needs 1,160,000 in 30 days. Delaney can earn 0.05 annualized on a German security. The current spot rate for the euro is $1.00. Delaney can borrow funds in the U.S. at an annualized interest rate of .06. If Delaney uses a money market hedge, how much should it borrow in the U.S.?

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