8. A Thai company is expecting to receive US$ 5 million from an importer in the US after three months. The current spot exchange rate is Baht 43.75/US$ and 90-day forward rate is Baht 45.35/ US$. What will be the consequences if the Thai firm

(a) does not cover its exposure,

(b) covers 60 per cent and keeps 40 per cent exposure uncovered and

(c) covers 100 per cent of its exposure by entering into a forward contract? Suppose the spot exchange rate at the time the Thai company receives payment is Baht 44.10 US$. What is the cost of the forward contract (partial and full)?