CHAPTER IL PAYABLES 90-Day us. interest rook - 46% go-Day Malaysian interest rate : 3% go-Day Forward rade ringgit = 80,4 spot rate of Malaysian ringgit &quou. Compony a needs 300,000 ringgit in go days. It withes to reage: - Forward Hedge - Money Market Healpe c) Forward Hedge: 300,000 0,4 5120,000 1.03 b) Honey Market Hedge: (1)- Invest now. 300,000 291,262 ringgit now. Deposit 251,262 now - Performed in Malaysia Borrow now: 291,262. $0,404 - $ 114,670 Convenion to the spot rate $ $114, 670 104 $122, 377 (we pay the loon after goday Tso we have to convert to Hregit In this case we choose the forward Hedge, because it costs bess: $120.000