Suppose that the U.S. firm FIN340 Inc. buys construction equipment from the German firm XYZ at a price of 6 million. The equipment is to be delivered to the United States and paid for in one year. The current exchange rate is 0.89/$ (0.89 = $1). The current interest rate on one-year U.S. Treasury bills is 3%, and the current interest rate on one-year German government bonds is 1.5%.

If FIN340 Inc. exchanges Dollars ($) for Euros () today and invests the in Germany for one year, how many dollars does it need to exchange today in order to have 6 million in one year?

	1.	$6.64 million
	2.	$5.26 million
	3.	$5.16 million
	4.	$6.55 million