QUESTION 7 points Save Area Astute that Epoco, a mutational com e in the US Experts to recebe $1,100,000 in one year. The existing Spot rate of the Sinapore dollar ) 561. The one year forward rate of the Singapore Dollar is 501 Explo expects the future spot rate to be 5.62 with 80 percent procabaty or 3.67 with 20 percent probably Assume that one year put options on Singapore dollars are available with an exercise price of 5.64 and a premium of 5.03 per unit. One year call opoons on Singapore dollars are well with an exercise price of 5.62 and a premium of 5.00 per unit. Assume the following money market Singapore Deposit rate Given the formation determine whether a forward h TTT Ara 0 T would be most apropriate o ney market hedge oracurrency options he - 225 QUESTION Assume that Exploco, a multinational company based in the US expects to receive 551.100.000 in one year. The exsting spot rate of the Singapore dollar 55 1.61. The one year forward rate of the Sinore dollars SAL Explo expects the future spot rate to be 562 with 80 percent probability or 5.67 with 20 percent probability, Assume that one year put options on Singapore dollars are available, with an exercice price of 5.64 and a premium of 5.03 per unit. One-year call options on Singapore dollars are available with an exercise price of 5.62 and a premium of 5.0) per unit. Assume the following money market Sinupore Deporte borrowing rate Given this information determine whether a forward hade money market heden