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Hard Drive Corporation, a UK based company, will import components worth RM1,000,000 from a Malaysian importer. The invoice states that the amount will have to

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Hard Drive Corporation, a UK based company, will import components worth RM1,000,000 from a Malaysian importer. The invoice states that the amount will have to be paid in 3 months. The current exchange rate is GBP1 : RM5.68. due to the uncertainty over the British economy, the treasurer has reason to expect that the GBP will significantly depreciate against the Ringgit Malaysia for the next 3 months to GBPL : RM5.10. The current 3-month forward market offered by the local bank is GBP1: RM5.60. Breakdown how the treasurer of Hard Drive Corporation can use the forward market to hedge the firm's currency exposure

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