Ape's Indian affiliate "ABC India" sources most of its daily product lines from a Vietnamese company. Due to the shortage of working capital in India, the Indian importer's payment term is usually 180 days or longer. ABC India wants to hedge the payments payable by 10 million Vietnamese. While the Indian rupee has no options, the Vietnamese dong has a forward rate. Moreover, India is a common practice, such as India, ABC company, and monetary agency cooperation. In this case, the money broker will lock the current spot rate, in return for a 3.85% fee.

Use the following data exchange rates and interest rates, suggest a hedging strategy

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180-day account payable (VND) 10,000,000 Spot rate (VND/INR) 346.49 180-day forward rate (VND/INR) 338.28 Expected spot rate in 180 days (VND/INR) 339.86 180-day INR investing rate 6.00% 180-day VND investing rate 1.80% Currency agent's exchange rate fee 3.85% ABC India's cost of capital (WACC) 10.00%

Q: Anser in Remain Unhedged, Forward Market Hedge: Buy 180 days forward on VND, Money Market Hedge and Indian Currency Agent Hedge