The spot exchange rate is DKK 6.8911/$

The nine month forward rate is DKK 6.9866/$

Forecast of the management for the end of the ninth month is DKK 7.10/$

The company's cost of capital is 10 percent per year.

The Danish 9-month borrowing or lending rate is 5.5 % per annum

The U.S. 9-month borrowing or lending rate is 3.2 % per annum

A call or put option for the strike price of DKK 6.90/$ carries a premium of 1.14 percent for this period.

question:

If your company hedges this exposure in the money market, calculate the outcome of this hedge today assuming the company borrows and invests at the prevailing market rates that are cited above.