On 1/7/20x8, you enter into a contract to buy 10 million of ABC Bhds shares on 31/12/20x8 from your Malaysian friend at RM10 per share on 31/12/20x8. On 1/7/20x8, the spot exchange rate is RM1.00 = S$0.30, and the 6-month forward exchange rate is RM1.00 = S$0.31 (to buy RM), and RM1.00 = S$ 0.28 (to sell RM). Assume you want to ensure that you will not be exposed to foreign currency risk when you acquire the shares on 31/12/20x8.

Question (i): should you now enter into a forward exchange contract to buy/sell RM100 million on 31/12/20x8?

Question (ii): if the spot exchange rate is RM1.00=0.40 on 31/12/20x8, how much (net in S$) will you have to pay to buy the shares?

Question (iii): if the spot exchange rate is RM1.00=0.25 on 31/12/20x8, how much (net in S$) will you have to pay to buy the shares?