$25$ pts

ABC Corp. is a U$.$S$.-$based importer of Italian bicycles. In one year, ABC Corp. will owe $100,000$ to an Italian supplier. The spot exchange rate is $$1\mathrm{.}24-61\mathrm{.}00,$ and the one$-$year forward exchange rate is $$1\mathrm{.}26=61\mathrm{.}00,$ the one$-$vear interest rate in italy is if $=4\mathrm{.}3\%,$ the one$-$year interest rate in the US is $5\mathrm{.}1\%.$ What would be the dollar cost in one year of this payable if ABC Corp. used a forward market hedge?

$5125,295$

$$121\mathrm{.}000$

$3123,000$

$51260000$