a Question 5 Leigheas plc is an Irish pharmaceutical company. It has bought goods from a US supplier and must pay $4,000,000 for them in three months. The following annual interest rates and exchange rates are currently available: US Dollar Euro Deposit Rate Borrowing Rate Deposit Rate Borrowing Rate 10.75% 11.00% 14.25% 7% SVE Exchange Rate Spot 1.8625 -1.8635 3 Months Forward 1.8445 - 1.8460 (a) Calculate the cost in three months-time of hedging using the following methods: (i) Forward exchange contract (7 marks) (ii) Money market hedge (16 marks) (b) Advise whether Leigheas ple should undertake the forward exchange contractor the money market hedge. (2 marks) Total marks (25 marks)