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The Big Cheese Corporation ( Big ) needs 1 , 0 0 0 , 0 0 0 wheels of aged parmesan reggiano cheese in two

The Big Cheese Corporation (Big) needs 1,000,000 wheels of aged parmesan reggiano cheese in two years. The Big Cheese Corporation (Big) negotiates a forward contract with the Foreign Cheese Company (Foreign). The spot price of a wheel of parmesan reggiano is $125. Foreign has an 10% rate of return and 5% annual holding costs. What will the total contract price be for the forward contract between Big and Foreign?
A.165,312,500
B.151,250,000
C.125,000,000
D.143,750,000

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