You are a new assistant treasurer of Summit Enterprise, Inc. (American firm) based in New Jersey. Your firm has created an A/P 10,000,000 (denominated in ) due six months from today. Your firm is facing the following market data: Citibanks FX Quotations: Spot rate (bid) = $1.2896/ Spot rate (Asked) = $1.2916/ 6-month forward rate (bid) = $1.2944/ 6-month forward rate (Asked) = $1.2998/ The currency market is highly volatile. Your firm attempts to manage its currency exposures through hedging. If your firm hedged 100% in the forward market, it would lock-in the $ cost to pay 10,000,000 account payable at:

		$12,896,000
		$12,944,000
		$12,998,000
		$12, 916,000