Business
Business, 05.05.2020 17:41, reamy613

Assume the following information: 90‑day U. S. interest rate = 4% 90‑day Malaysian interest rate = 3% 90‑day forward rate of Malaysian ringgit = $.400 Spot rate of Malaysian ringgit = $.404 Assume that the Santa Barbara Co. in the United States will receive 100,000 ringgit in 90 days. It wishes to hedge this receivable position. Would it be better off using a forward hedge or a money market hedge? Substantiate your answer with estimated costs for each type of hedge.

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Assume the following information: 90‑day U. S. interest rate = 4% 90‑day Malaysian interest rate = 3...

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