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7. Assume the following: Your firm is expecting a net receivable from Singapore of 10,000,000SGD one year from now Current Singaporean dollar (SGD) spot

7. Assume the following: Your firm is expecting a net receivable from Singapore of 10,000,000SGD one year from now Current Singaporean dollar (SGD) spot rate is $0.74USD Your firm can borrow money in the U.S. for 1-year at 4% Your firm can borrow money in Singapore (in SGD) for 1-year at 5% Your firm can earn 1% on 1-year USD deposits Your firm can earn 2% on 1-year SGD deposits How much will your firm receive in USD if it employs a money market hedge?

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