Problem 10-7 (algorithmic) Question Help Krystal. Krystal is a U.S.-based company that manufactures, sells, and installs water purification equipment. On April 11, the company sold a system to the City of Nagasaki, Japan, for installation in Nagasaki's famous Glover Gardens (where Puccini's Madame Butterfly waited for the return of Lt. Pinkerton). The sale was priced in yen at W30,000,000, with payment due in three months. The exchange rate and interest rate data are shown in the popup window: 23 Note that the interest rate differentials vary slightly from the forward discounts on the yen because of time differences for the quotes. The spot V118.103/5 for example, is a mid-point range. On April 11, the spot yen traded in London from V118.622/9 to 117.584/5. Krystal's Japanese competitors are currently borrowing yen from Japanese banks at a spread of two percentage points above the Japanese money rate. Krystal's weighted average cost of capital is 15.5%, and the company wishes to protect the dollar value of this receivable. 3-month options are available from Kyushu Bank: call option on W30,000,000 at exercise price of 118.000/$:a 1.3% premium; or a put option on 30,000,000, at exercise price of 118.000/$: a 3.3% premium a. How much in U.S. dollars will Krystal receive in 3 months without a hedge if the expected spot rate in 3 months is assumed to be V118.103/$? $ (Round to the nearest cent.) Enter your answer in the answer box and then click Check Answer. 5 parts remaining 2 Uber Presentati....pp... A Show All A Data Table is a U.S.-base Japan, for ins in yen at $30,00 company sold a system he return of Lt. Pinkerto n in the popup window erest rate differ mid-point rang om Japanese bil company wishe quotes. The spot 118. hese competitors are cu average cost of capit Spot exchange rate: 118.103/$ (closing mid-rates) 1-month forward rate: 117.621/$, a 4.92% per annum premium 3-month forward: 116.677/$, a 4.89% per annum premium 1-year forward: 112.519/$, a 4.96% per annum premium Click on the icon located on the top-right comer of the data table in order to copy its contents into a spreadsheet. h; or a put option on are available for exercise price J.S. dollars will to be Y118.103/$? the nearest cer Money Rates United States Japan Differential One month 4.8875% 0.09125% 4.79625% Three months 4.9750% 0.09500% 4.88000% Twelve months 5.4750% 0.31250% 5.16250% Click on the icon located on the top-right corner of the data table in order to copy its contents into a spreadsheet. er in the answ Print Done Check Answer entati.pp... ^ Show