a) Assume that Intel has net receivables of SGD1,500,000 in 90 days. The spot rate of the Singapore Dollar (SGD) is USD0.7300, and the Singapore interest rate is 12.00% per annum and US interest rate is at 10.00% per annum. Suggest how the U.S. firm could implement a money market hedge. (Show your strategy and workings). (10 marks)

b) The available information is as below:

90-day U.S. interest rate	5.00%
90-day Malaysian interest rate	4.00%
Spot rate of Malaysian Ringgit (MYR)	USD0.2445
90-day forward rate of Malaysian Ringgit (MYR)	USD0.2386

Assume that the NXP Semiconductor in the United States will need MYR5,000,000 in 90 days. It wishes to hedge this payables position. Decide whether it would be better off using a forward hedge or a money market hedge. Substantiate your answer with estimated costs for each type of hedge. (15 marks)