BPP Mock Exam 3 Question 16 on money market hedging

Hi John,

I have watched your videos on money market hedging and the exchange rates which i believe i am pretty good at answering them and have a good understanding but i have just done a mock exam and unfortunately i have got this question wrong but the answers dont seem to help.

my calculations were:

Borrow 12m dinars @ 1.04% (Six month Interest rate) = 11,538,462
Convert to $ at spot which is above @ 57.52 = 200600
Deposit @ dollars @ 1.005% = $199601

I look forward to your reply.

Regards,

Shane