Question: Control IBM sold computer chips from NEC, a Japanese electronics concern, will receive 1 7 1 million in three months. Currently, the spot exchange rate

Control IBM sold computer chips from NEC, a Japanese electronics concern, will receive 171 million in three months. Currently, the spot exchange rate is 106/$ and the three-month forward rate is 111/$. The three-month money market interest rate is 9 percent per annum in the U.S. and 8 percent per annum in Japan. The management of IBM decided to use the money market hedge to deal with this yen receivable.
(a) Compute the dollar revenue (3-month later) of the yen receivable

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