XYZ Corporation, located in the United States, has an accounts payable obligation of 750 million payable in one year to a bank in Tokyo. The current spot rate is 125/$1.00 and the one year forward rate is 109/$1.00. The annual interest rate is 8 percent in Japan and 6 percent in the United States. XYZ can also buy a one-year call option on yen at the strike price of $0.0086 per yen for a premium of 0.012 cent per 100. The future dollar cost of meeting this obligation using the money market hedge is

$5,888,889.

$6,545,400.

$6,653,833.

$6,880,734.