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b) The available information is as below: Assume that the NXP Semiconductor in the United States will need MYR5,000,000 in 90 days. It wishes to
b) The available information is as below: Assume that the NXP Semiconductor in the United States will need MYR5,000,000 in 90 days. It wishes to hedge this payables position. Decide whether it would be better off using a forward hedge or a money market hedge. Substantiate your answer with estimated costs for each type of hedge. (15 marks)
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