21. a. Assume that Chicken Inc. expects to receive S$1,000,000 in one year. The existing spot rate of the Singapore dollar is $.60. The one-year forward rate of the Singapore dollar is $.62. Chicken Inc, created a probability distribution for the future spot rate in one year as follows: Future Spot Rate Probability $.61 25% .64 50 .67 25 Assume that one-year put options on Singapore dollars are available, with an exercise price of $.64 and a premium of $.04 per unit. One-year call options on Singapore dollars are available with an exercise price of $.60 and a premium of $.02 per unit. Assume the following money market rates: Deposit rate Borrowing rate U.S. 4% 7% Singapore 5% 6% Given this information, determine whether a forward hedge, money market hedge, or a currency options hedge would be most appropriate. Then compare the most appropriate hedge to an unhedged strategy, and decide whether Chicken Inc. should hedge its receivables position