Kentucky Electricals Inc. is a US based company that exports electrical and electronic products to Singapore. Kentucky expects to receive payment on a shipment of goods in four months. Because the payment will be in Singapore Dollars and since Kentucky is concerned about a possible decline in the value of the Singapore Dollar over the next four months it is considering to hedge this risk. The US risk free rate is $5\mathrm{.}5\%$ and the Singapore risk free rate is $8\mathrm{.}75\%.$ Assume that the interest rates are going to remain fixed at this level for the next four months. The current spot exchange rate is US $ $0\mathrm{.}57($per Singapore Dollar$).$

$($a$)$ How should Kentucky Electricals hedge its exposure to currency risk? Should it use a long or short forward contract? Explain succinctly in a few sentences.

$($b$)$ Calculate the no arbitrage fair exchange price at which Kentucky Electricals could enter into a forward contract that expires in $4$ months.