Besides, you have a subsidiary company located in Singapore, namely MJ Pte Ltd. MJ Pte Ltd imports pharmaceuticals products from the US. It is expected the coming quarter invoices that bill from the US is as follows:

In one months, time US$ 2 million

In two months, time US$ 3.5 million

In three months, time US$ 6 million

MJ decides to use the forward market to cover its foreign currency exposure. The following are a Singapore bank quoted US$ spot rate and forward points:

	Bid	Offer
Spot	1.3620	1.3636
One month	32	22
Two months	53	44
Three months	87	76
Six months	125	108

(a) Compute the forward rates to cover the foreign currency exposures for MJ Pte Ltd.(6 marks)

(b) Calculate the total of SG$ that MJ Pte Ltd needs to pay for the expected invoices. (13 marks)