Suppose a US firm has just bought an asset from a Japanese firm for ¥500 million, due in one year. The spot exchange rate for Japanese yen is ¥122/$ and the one-year forward exchange rate for Japanese yen is ¥130/$. The one-year interest rate is 5% in the US and 12% in Japan. Calculate today'sdollar cost of meeting this obligation using a money market hedge.
a. $3,659,251
b. $3,663,004
c. $3,842,213
d. $3,485,000