Innovative Bicycle Makers of Exeter, uk, must hedge an accounts payable of myr 100,000 due in 90

Question:

Innovative Bicycle Makers of Exeter, uk, must hedge an accounts payable of myr 100,000 due in 90 days for bike tires purchased in Malaysia. Suppose that the gbp/myr forward rates and the gbp effective returns are as follows:

(a) What are IBM's cash flows given a variable-collateral margin account?
(b) What are IBM's cash flows given periodic contracting?

Accounts Payable
Accounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive...