Problem 4 Intro Bay Area Sports Car is a luxury car dealership importing cars from Europe. The company will need 100.000 euros () in one year to pay its German suppliers. The spot rate is $1.15 per euro and the one-year forward rate is $1.151 per euro. The U.S. interest rate is 8% and the euro interest rate is 3%. Part 1 | Attempt 1/10 for 10 pts. What amount of euros is required now if the company wants to create a money market hedge (in )? 97087.37 Correct With a money market hedge, the firm borrows dollars, converts them to euros and then invests the euros in short-term securities (money market instruments). Euros required in one year (future value): FVe = 100,000 Euros required now (present value): FVE 100,000 97,087 1 + 0.03 PV 1+1 Attempt 1/10 for 10 pts. Part 2 How much should the company borrow now (in $)? 0+ decimals Submit Part 3 | Attempt 1/10 for 10 pts. What is the total cost of creating a money market hedge, including interest (in $)? 0+ decimals Submit