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PLEASE ANSWER FAST. WILL UPVOTE IF YOU DO ALL THE PARTS. FAST. Question 4 Europa Co is a German company (uses Euros) that has important

PLEASE ANSWER FAST. WILL UPVOTE IF YOU DO ALL THE PARTS. FAST.

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Question 4 Europa Co is a German company (uses Euros) that has important suppliers in Singapore. It is due to make a payment to a Singaporean supplier of SGD750,000 in 3 months. Foreign exchange rates: SGD/EUR Spot Two months forward Three months forward 1.611 - 1.671 1.642 - 1.713 1.689 - 1.734 Annual interest rates: Borrowing (%) 5.20 Investing (%) 4.10 0.90 0.50 United Kingdom Germany Singapore Canada 1.30 2.10 1.10 1.60 a) Calculate the results from a Forward Market Hedge. Assume the company has no surplus cash. [3 marks] b) Calculate the results from a Lead Payment Hedge. Assume the company has no surplus cash. [4 marks] c) Calculate the results from a Money Market Hedge. Assume the company has no surplus cash. [9 marks] d) Based on your calculations from (a) - (c), select which is the most cost-effective hedge. [3 marks] e) List an advantage and a disadvantage of - Forward Market Hedge - Lead Payment Hedge - Money Market Hedge [6 marks]

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