2. A Turkish firm is expecting to receive 2,200,000 Singapore Dollar (SGD) in one year for supplies to a Singapore based company. The current spot rate of the SGD is 0.5TRY. The one year forward rate of SGD is 0.55TRY. Turkish multinational corporation created a probability distribution for the future spot rate in one year as follows Future Spot Rate (TRY per SGD) 0.52 0.54 0.58 Probability 20% 50% 30% The one year put option on SGD are available with strike price (or exercise price) of 0.54TRY and a premium of 0.05TRY. 0.50TRY and a premium of 0.04TRY per unit Current money market rates are One year call options on SGD are available with a strike price of Turkey Singapor 6% Deposit rate Lending Rate 11% You are required to determine whether a forward hedge, money market hedge or current option hedge would be suitable. Then compare the most suitable hedge to an unhedged strategy and suggest what is best for Turkish firm