Assume the following information: 90-day U.S. interest rate 4%, 90-day Malaysian interest rate - 3%. 90-day forward rate of Malaysian ring it-$.400. Spot rate of Malaysian ring it -$.404, Assume that the Santa Barbara Co. in the United States will need 300,000 ringgit in 90 days. It wishes to hedge this payables position. Would it be better off using a forward hedge or a money market hedge? Substantiate your answer with estimated costs for each type of hedge. b) Assume that Loras Corp. imported goods from New Zealand and needs 100,000 New Zealand dollars 90 days from now. It is trying to determine whether to hedge this position. Loras has developed the following probability distribution for the New Zealand dollar: Possible Value of New Zealand Dollar in 90 Days 5.40 Probability 45 48 5% 50 53 55 20 30 30 10 The 90-day forward rate of the New Zealand dollar is $.52. The spot rate of the New Zealand dollar is $.49. Develop a table showing a feasibility analysis for hedging. That is, determine the possible differences between the costs of hedging versus no hedging. What is the probability that hedging will be more costly to the firm than not hedging? Determine the expected value of the additional cost of hedging. c) Can Brooklyn Co. determine whether currency options will be more or less expensive than a forward hedge when considering both hedging techniques to cover net payables in euros? Why or why not?