DEC Is Asked to Quote a Price in Belgian Francs

Multiple Choice

DEC is asked to quote a price in Belgian francs for computer sales to a Belgian company. The computers will be paid for in four equal, quarterly installments, beginning 90 days from now. DEC requires a minimum price of $2.5 million to accept this contract. Suppose the spot and forward rates for the Belgian franc are as follows: What is the minimum Belgian franc price that DEC should quote for this order?

A) BF 82,781,457
B) BF 87,108,014
C) BF 81,433,225
D) BF 84,745,763