David Point Ltd., a U.S. firm, has net receivables of 345,000 Singapore dollars in 90 days. The spot rate of the S$ is $0.50, and the Singapore and US interest rates are 4% and 6% per annum respectively. Assume that 360 days in a year.

a. Suggest how David Point could implement a money market hedge. Show ALL steps and workings and correct to the nearest dollars.) (16 marks)

b. Estimate the expected spot rate of the Singapore dollars in six months. (4 marks)