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4 pts Question 16 GED Corporation, located in the United States, has an accounts payable...

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4 pts Question 16 GED Corporation, located in the United States, has an accounts payable obligation of Y800 million payable in one year to a bank in Tokyo. The current spot rate is 115/$1.00 and the one year forward rate is 110/$ 1.00. The annual interest rate is 3 percent in Japan and 6 percent in the United States. GED can also buy a one-year call option on yen at the strike price of $0.0080 per yen for a premium of 0.0 10 cent per yen. The maximum future dollar cost of meeting this obligation using the call option hedging is O $6,545,400. O$6,880,734. $6,400,000. O $6,484,800. 4 pts D Question 17

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