a. Consider the following information: You expect an amount of INR 20 million of payables due in 6 months. Assume that you do not have additional cash available to put aside for this payment at the moment. Considering this, you obtain the following information: The spot rate for INR is AED 0.0484, the 180-day rate is AED 0.0451. The interest rate in India is 4%, and the interest rate in UAE is 2.5%, also over 180 days. Calculate the cost of a money market hedge in AED. Round your answer to two decimal places. (2) b. Consider a transaction where you expect to receive EUR 450 000 in 180 days. The 180-day forward rate that you are quoted for the EURO is AED 3.9957. What amount do you expect to pay or receive in 180- days if you use a forward hedge. 1. State if the amount will be received or paid in 180-days (0.5) 2. State the amount, round your answer to two decimal places. (0.5) c. Considering the current volatility in exchange rates, assume a sharp decrease in the subsidiaries currency, how does this affect the parent (home) countries cash flows for each form of exposure? Discuss the difference between a money market hedge and a forward hedge and which one would be better in the current COVID-19 situation and explain why. (3)