Problem Set 6 1. Money Market Hedge on Payables. Blake Inc. needs 1,000,000 in 30 days. It can earn 5% annualized on a German security. The current spot rate for the euro is $1.00. Blake can borrow funds in the United States at an annualized interest rate of 6%. If Blake uses the money markets to hedge the payable, what is the cost of implementing the hedge (10 points)