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The U.S.-based Minnesota Mining Company (MMC) has a one-year account payable from a German manufacturing company worth Euro 1,000,000. The current spot rate is $1.3600/,

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The U.S.-based Minnesota Mining Company (MMC) has a one-year account payable from a German manufacturing company worth Euro 1,000,000. The current spot rate is $1.3600/, and the 1-year forward rate is $1.3800/. MMC can borrow Euro in Frankfurt at 8% per annum. MMC has a weighted average cost of capital of 12% per annum. A) Describe the forward market hedge clearly, B) Describe the money market hedge clearly

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