Spot Foreign Exchange 99.50 100.50 Y/$ 1 year USD interest rate spread (for top credits) 2.1 % - 1.9 % 1 year YEN interest rate spread (for top credits) 1.1 % - 0.9 % Your firm is not a bank and must pay spreads in the money markets. You have a trade receivable (invoice) from your client/customer (a AAA credit) which is due in a year in Yen for 1000Yen. Your home currency is USD and your firm is also a top (AAA) credit. Instead of paying 1000Yen in a year, your client/customer wants to amend this invoice and opens negotiations offering to change the timing and/or the currency of it along with its face value. They propose three possible variations, considered each separately on its own merits.

To accept a third alternate change, in this negotiation what is your breakeven or minimum sum for receiving Dollars in a year instead of Yen in a year (to 2 decimal places)?