Harmony of Manhattan, New York, is building a new factory in Malaysia. In three months, the company has to pay RM 30,000,000. The currency is Malaysian Ringgit. Harmony's weighted average cost of capital is 15%. The foreign exchange and interest quotations are the following: Construction payment due in three months (A/P, Ringgit) Present spot rate (RM/$) 30,000,000 4.0000 Three-month forward rate (RM/S) 4.2000 8.000% Malaysian three-month interest rate (per annum) U.S. dollar three-month interest rate (per annum) Harmony's weighted average cost of capital (WACC) 4.000% 15.000% Harmony's treasury manager, concerned about the exchange rate fluctuations, contemplates hedging its foreign exchange risk. The manager's own forecast is as follows: Expected spot rate in three-months (RM/S): 4.8000 Highest expected rate (reflecting a significant devaluation) Expected rate 4.5000 3.8000 Lowest expected rate (reflecting a strengthening of the RM) What realistic alternatives are available to Harmony for making payments? Which method would you select ar why? Harmony of Manhattan, New York, is building a new factory in Malaysia. In three months, the company has to pay RM 30,000,000. The currency is Malaysian Ringgit. Harmony's weighted average cost of capital is 15%. The foreign exchange and interest quotations are the following: Construction payment due in three months (A/P, Ringgit) Present spot rate (RM/$) 30,000,000 4.0000 Three-month forward rate (RM/S) 4.2000 8.000% Malaysian three-month interest rate (per annum) U.S. dollar three-month interest rate (per annum) Harmony's weighted average cost of capital (WACC) 4.000% 15.000% Harmony's treasury manager, concerned about the exchange rate fluctuations, contemplates hedging its foreign exchange risk. The manager's own forecast is as follows: Expected spot rate in three-months (RM/S): 4.8000 Highest expected rate (reflecting a significant devaluation) Expected rate 4.5000 3.8000 Lowest expected rate (reflecting a strengthening of the RM) What realistic alternatives are available to Harmony for making payments? Which method would you select ar why