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Money market hedge and bid-ask spreads

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Belgium worth € 1 million and the amount is due in 360 days. I want to hedge my Belgian euro payables using a money market hedge and obtain the following quotes from my banker:

Spot rate is: $1.1000 - $ 1.1100 / €

The Belgium interest rates are: 3.0 % - 3.4 % annually and

US interest rates are: 2.1 % - 2.5 % annually.

Using a money market hedge and bid-ask spreads, what are my $ payables in 360 days?

a.$1,096,044.49

b.$1,104,611.65

c.$1,077,669.90

d.$1,094,660.20

Reference no: EM132523546

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