iT computers purchased computer chips from computech, a French electronics and was billed FF250 million payable in three months.

iT computers purchased computer chips from computech, a French electronics and was billed FF250 million payable in three months. Currently the spot exchange rate is FF100/$ and the three months money market interest rate is 7% per annum in the US ,and 6% per annum in France. The management of IT computers decided  to use the money hedge to deal with this France account payable.