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Assume the following information 90 day U.S. interest rate5% 90 day Malaysian interest rate 3% 90 day forward rate of Malaysian ringgit Spot rate of

Assume the following information 90 day U.S. interest rate5% 90 day Malaysian interest rate 3% 90 day forward rate of Malaysian ringgit Spot rate of Malaysian ringgit Assume that the Santa Barbara in the United States will need 100,000 ringgit in 90 days. It wishes to hedge this payables positionthe firm uses the forward hedgeit will pay 90 days
A. 39000
B. 40170
C. 46102
D. 40950
E. 45000
90 day forward rate of Malaysian ringgit=\$.45 Spot rate of Malaysian ringgit=\$.39

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