Question: please answer Please use this information to answer the question below: A US firm's expected Accounts Payable in Canada due in 1 year CAD 20,000,000

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Please use this information to answer the question below: A US firm's expected Accounts Payable in Canada due in 1 year CAD 20,000,000 Current Spot Rate (SR) for CAN USD 0.65 Annual interest rate in US (Rh) 5% Annual interest rate in Canada (Rf) 3% If the US firm wants to set up a money market hedge for their CAN payables, today it should: O Borrow USD from US bank, buy USD with EUR at current spot rate, invest CAN in a Canadian bank. Borrow USD from US bank, buy EUR with USD at current spot rate, invest CAN in Canadian bank. Borrow CAN from a Canadian bank, buy CAN with USD at current spot rate, invest USD in US bank. Borrow CAN from a Canadian bank, sell CAN for USD at current spot rate, invest USD in US bank

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