b)A KENYAN company has agreed to sell goods to an importer in Pakistan at an invoiced price of Pakistan Rupee (PRS) 1,500,000 (Pakistan Rupees (PRS) is the currency of Pakistan. Of this amount, PRS 600,000 will be payable on shipment, PRS 450,000 one month after shipment and PRS 450,000 three months after shipment. The quoted foreign exchange rates (1 Ksh per PRS) at the date of shipment stands as follows: Spot 1.690 - 1.692 One month 1.687 - 1.690 Three months 1.680 - 1.684 The company decides to enter into appropriate forward exchange contracts through a bank in order to hedge these transactions. Required: i).Discuss TWO advantages of hedging in this way. (2 mks) ii).Calculate the amount in Kenya Shillings that the Kenyan Company would receive. (3 mks) iii).Comment with hindsight on the wisdom of hedging in this instance, assuming that the spot rates at the dates of receipt of the two installments of PRS 450,000 were as follows: First instalment 1.69 - 1.69 Second instalment 1.700 - 1.704 (2 mks