Your firm is a U.S.-based importer of bicycles. You have placed an order with a Swiss firm for SFr. 1,000,000 worth of bicycles. Payment (in Swiss francs) is due in 12 months. Use a forward market hedge to redenominate this one-year payable into a USD-denominated payable with a one-year maturity (First rows: spot rate; second rows: 12 months Forward rate). Hint: Ignore contract sizes and irrelevant exchange rates. You can use the direct rates (U.S. $ equiv.) and ignore the indirect rates (currency per $).

The following were computed without rounding. Select the answer closest to yours.

Group of answer choices

a) $1,000,000

b)$920,000

c)$1,086,957

d)$1,250,000