Stonewall, a Singapore-based investment trust, will receive USD 2,021,000 in one year. The interest rate in the U.S. is 7% per annum and the interest rate in Singapore is 5% per annum. The spot rate is SGD 0.7056/USD and the U.S. dollar is expected to be at SGD 0.6246/USD in one year. If Stonewell employs a money market hedge, how much SGD will it invest in Singapore?

Select one:

a. 1,332,727

b. 1,179,735

c. 1,399,363

d. 1,358,112