While visiting Tokyo, you purchased a Lexus sports car to be delivered to you in six months. The purchase price is ¥7,000,000 to be paid on the delivery date. You are going to keep your money at the Bank of Tokyo for the next six months, which offers 3 % per annum, compounded monthly. The current spot rate is ¥110/$ and the current six-month forward rate is ¥112/$.
How many dollars do you need today in order to be able to pay ¥7,000,000 in six months?