Samsong Inc

Samsong Inc.needs €1,000,000 in 30 days.Samsong can earn 5 percent annualized on a German security.The current spot rate for the euro is $1.00.Samsong can borrow funds in the U.S.at an annualized interest rate of 6 percent.If Samsong uses a money market hedge,how much should it borrow in the U.S.

A) $952,381.
B) $995,851.
C) $943,396.
D) $995,025.

Correct Answer:

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