Question: -PLEASE SOLVE USING EXCEL AND SHOW WORK AND EXPLAIN HOW YOU GOT EACH NUMBER PLEASE!!! Princess Cruise Company (PCC) purchased a ship from Mitsubishi Heavy

-PLEASE SOLVE USING EXCEL AND SHOW WORK AND EXPLAIN HOW YOU GOT EACH NUMBER PLEASE!!!

Princess Cruise Company (PCC) purchased a ship from Mitsubishi Heavy Industry. PCC owes Mitsubishi Heavy Industry 600 million yen in one year. The current spot rate is 114.22 yen per dollar and the one-year forward rate is 111.32 yen per dollar. The annual interest rate is 0.8% in Japan and 2.6% in the U.S. PCC can also buy a one-year call option on yen at the strike price of 5.008900 per yen for a premium of .017 cents per yen. Compute the future dollar costs of meeting this obligation using the forward hedge. (USD, no cents) Selected Answer: 104,652 Correct Answer: 5,389,867 + 1

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