HEDGING PAYABLES Assume that the Santa Barbara Co. in the United States will need 300,000 ringgit in 90 days. It wishes to hedge this payables position. Would it be better off using a forward hedge or a money market hedge? Substantiate your answer with estimated costs for each type of hedge. AD%Assume this is already adjusted to be a rate for just 90days 3.0%Assume this is olready adjusted to be arateforjust 90 days 90-day US interest rate 4% 90-day Malaysian interest rates 3% Spot rate of Malaysian ringgit $.404 Effective amount paid for the 300,000 ringgits if a money markte hedge is used 0.400 0.404