XYZ Corporation, located in the United States, has an accounts payable obligation of 4 million payable in one year to a bank in Tokyo. The current spot rate is 100/$1.00 and the one year forward rate is 98/$1.00. The annual interest rate is 3 percent in Japan and 6 percent in the Unite States. XYZ can also buy a one-year call option on yen at the strike price of $0.0085 per yen for a premium $0.0001 per yen. The future dollar cost of meeting this obligation using the money market hedge is: $34,424 $40,816 $41,165 $36,538