Question: please IBM purchased computer chips from NEC, a Japanese electronics concern, and was billed 250 million payable in three months. Currently, the spot exchange rate

please

IBM purchased computer chips from NEC, a Japanese electronics concern, and was billed 250 million payable in three months. Currently, the spot exchange rate is 107 per dollar and the three-month forward rate is 100 per dollar. The three-month money market interest rate is 6 percent per annum in the U.S. and 5 percent per annum in Japan. The management of IBM decided to use a money market hedge to deal with this yen account payable. Required: What is the dollar cost of meeting the yen obligation in three months? Note: Do not round intermediate calculations. Round your final answer in whole dollars not in millions

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