34. (40 points) 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 $.63. Chicken Inc. created a probability distribution for the future spot rate in one year as follows: $.59 .63 .67 Probability 20% 50 30 ssume that one-year put options on Singapore dollars are available, with an exercise price of s.64 and price of $.62 and a premium of $.04 per unit. Assume the following money market rates: a premi um of $.04 per unit. One-year call options on Singapore dollars are available with an exercise Deposit rate Borrowing rate 7% 8% Singapore 6% 7% 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. a