Blake Inc Needs €1,000,000 in 30 Days

Multiple Choice

Blake Inc. needs €1,000,000 in 30 days. It can earn 5 percent annualized on a German security. The current spot rate for the euro is $1.00. Blake can borrow funds in the U.S. at an annualized interest rate of 6 percent. If Blake 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.