3. Lora Corp. needs NZ$100,000 in 180 days. The 180-day forward rate is NZ$1=$.52. Spot rate Prob. $0.40 5% 0.45 10% 0.48 30% 0.50 30% 0.53 20% 0.55 5% What is the probability that the forward hedge will result in higher cost than no hedge? How much is E(RCHp)? Overall, is forward hedge preferred? 4. Please use the following information to answer the next three questions about money market hedge: 90-day U.S. interest rate 4% 90-day Malaysian interest rate 3% 90-day MYR forward rate $.40 MYR spot rate $.404 Santa Barbara Co. will need 300,000 ringgit in 90 days. How much MYR do you need after currency conversion today? How many U.S. dollars do you need to borrow today in order to get the amount of MYR you need? How many U.S. dollars do you need to pay off after 90 days?