The Forward Rate of the Swiss Franc Is You Need to Purchase SF200,000 in 360 Days

Multiple Choice

The forward rate of the Swiss franc is $.50. The spot rate of the Swiss franc is $.48. The following interest rates exist:
$$\begin{array} { l c c } & \text { U.S. } & \text { Switzerland } \\\text { 360-day borrowing rate } & 7 \% & 5 \% \\\text { 360-day deposit rate } & 6 \% & 4 \%\end{array}$$
You need to purchase SF200,000 in 360 days. If you use a money market hedge, the amount of dollars you need in 360 days is:

A) $101,904.
B) $101,923.
C) $98,770.
D) $96,914.
E) $92,307.