QUESTION 5 To hedge the exposure in the previous problem, Magnetronics can alternatively use a money market hedge. Magnetronics can borrowland U.S. dollars at an annualized interest rate of 12% and Taiwanese dollars at an annualized interest rate of 8%. What is the hedged dollar value of the payable in 3 months (if Magnetronics were to use a money market hedge)? $8,052,176.5 b. $7,817,647.1 $8,269,333.3 QUESTION 4 Magnetronics, Inc., a U.S. company, owes its Taiwanese supplier NT$200 million in 3 months. The company wishes to hedge its NTS payable. The current spot rate is NT$1 = U.S.$0.03987, and the three month forward rate is NT$1 = U.S.$0.04051. What is the hedged dollar value of the payable in Magnetronics were to use a forward contract)? a $7,974,000 b. $8,102,000