QUESTION 32 You are the manager of a US firm that manufactures Polymerase Chain Reaction (PCR) machines in Waltham, MA. In August of 2008 you received an order for 200 PCR machines from Japan. Payment of 88,000,000 is due in August of 2009 (one year lead time). You open the newspaper and find the following information: Exhibit 1: Spot and Forward Exchange Rates (Bid, Ask: Yen per unit of USD) Currency Spot 12 Months Yen 101 90 103 20. 104.10 Exhibit 2. Eurocurrency Interest Rates (Bid-Ask), Annualized Currency 12 Months US Dollar 562-5.75 Yen 1.60 - 200 KEEP 4 decimal points in all of your calculations If the US firm uses currency option (with 5% notional value) and dollar stays the same (spot rate) then the gain (loss if negative) will be closest to: QUESTION 32 You are the manager of a US firm that manufactures Polymerase Chain Reaction (PCR) machines in Waltham, MA. In August of 2008 you received an order for 200 PCR machines from Japan. Payment of 88,000,000 is due in August of 2009 (one year lead time). You open the newspaper and find the following information: Exhibit 1: Spot and Forward Exchange Rates (Bid, Ask: Yen per unit of USD) Currency Spot 12 Months Yen 101 90 103 20. 104.10 Exhibit 2. Eurocurrency Interest Rates (Bid-Ask), Annualized Currency 12 Months US Dollar 562-5.75 Yen 1.60 - 200 KEEP 4 decimal points in all of your calculations If the US firm uses currency option (with 5% notional value) and dollar stays the same (spot rate) then the gain (loss if negative) will be closest to