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Daya Bhd (DB) is a Malaysian exporter of computer chips. DB has agreed to deliver 10,000 units of chip at a unit price of USD

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Daya Bhd (DB) is a Malaysian exporter of computer chips. DB has agreed to deliver 10,000 units of chip at a unit price of USD 50 to a US firm. Three months credit is allowed to the US firm before payment is due. DB can borrow short term at 2% above bank base rate or invest short at base rate either in Malaysia or the US. Spot 1-month forward 3-month forward MYR/USD 4.4520 4.4500 4.4315 3-month call option at a strike price of MYR4.4320 3-month put option at a strike price of MYR4.4330 . 3-month forecasted spot rate : MYR 4.4340 . Option premium: 1.5% of contract value . Weighted average cost of capital: 10% I 1 EPPM 4433 Current bank base rate: United States: 4% per annum Malaysia: 8% per annum Calculate the foreign exchange revenues or costs via money market hedging

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