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 to hedge the payable,what is the cost of implementing the hedge

A) $1,000,000.
B) $1,055,602.
C) $1,000,830.
D) $1,045,644.

Correct Answer:

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