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You have a 50,000,000 Yen payable. The spot rate is $0.0092/YEN. The Japanese deposit interest rate is 0.6% and the U.S borrowing rate is 2.5%.

You have a 50,000,000 Yen payable. The spot rate is $0.0092/YEN. The Japanese deposit interest rate is 0.6% and the U.S borrowing rate is 2.5%. Calculate the dollar amount of a money market hedge.

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