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Miss Aloya Kueh Lapis is the financial officer of Thom Thom Bek Bhd . , a Malaysia Firm. She just concluded negotiations for the sale
Miss Aloya Kueh Lapis is the financial officer of Thom Thom Bek Bhd a Malaysia Firm. She just concluded negotiations for the sale of toys equipment to Sum Bat Lhe Mok, a Thai firm, for THB The sale is made in March, with payment due three months later in June. Miss Aloya Kueh Lapis has collected the following financial data and market information for the analysis of her currency exposure problem. Spot rate: MYR THBThreemonth forward rate: MYR THB Thom Thom Bek Bhds cost of capital: Thailand threemonth borrowing interest rate: pa Malaysia threemonth investment interest rate: pa: Thom Thom Bek's foreign exchange advisory service forecasts that the spotrate in three months will be MYR THBWhat alternatives are available to Miss Aloya for receiving payment? Show your workings. Marksii Which method would you recommend for Miss Aloya? Why?
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