Assume that you are a trade finance officer for Maybank Bank (MBB) in Kuala Lumpur. Your duties, besides advising new customers in trade financing, also includes the hedging of foreign currencies for use in international trading purposes. Below are some of the possible scenarios that may occur at work: (a) Mr. Lim, the manager of Lim & Lim Metal Works Sdn. Bhd. (LLMW), will receive payment from a Swiss company for the sum of CHF2.5m as full payment for the recent purchase of iron construction rods from LLMW. However, the initial contract stipulated that payment will only be made 90 days from the date of shipment. Looking at his calendar today, Mr. Lim realized that 30 days had gone by, from the time the goods were shipped out, without him doing anything regarding the impeding payment from the Swiss company (payment to be made to LLMW in Swiss francs). Using the information below, how should you advise Mr. Lim? (5 marks) Spot rates: USD/GBP = 1.8120 - 1.8138 MYR/USD = 3.7750 -3.8250 CHF/USD = 1.2209 - 1.2222 Forward premium=8.02% 1 Assume that you are a trade finance officer for Maybank Bank (MBB) in Kuala Lumpur. Your duties, besides advising new customers in trade financing, also includes the hedging of foreign currencies for use in international trading purposes. Below are some of the possible scenarios that may occur at work: (a) Mr. Lim, the manager of Lim & Lim Metal Works Sdn. Bhd. (LLMW), will receive payment from a Swiss company for the sum of CHF2.5m as full payment for the recent purchase of iron construction rods from LLMW. However, the initial contract stipulated that payment will only be made 90 days from the date of shipment. Looking at his calendar today, Mr. Lim realized that 30 days had gone by, from the time the goods were shipped out, without him doing anything regarding the impeding payment from the Swiss company (payment to be made to LLMW in Swiss francs). Using the information below, how should you advise Mr. Lim? (5 marks) Spot rates: USD/GBP = 1.8120 - 1.8138 MYR/USD = 3.7750 -3.8250 CHF/USD = 1.2209 - 1.2222 Forward premium=8.02% 1