roblem #3 ( 40 Points) A U.S. company buys merchandise from a Singapore supplier on May 1 for $1,000,000 bill on August 1. To hedge foreign exchange risk, on May 1 the U.S. company enters a forwar a Singapore supplier on May 1 for $1,000,000. The company pays the for S$1,000,000 with an August 1 delivery date. On August 1 the company purchases the on May 1 the U.S. company enters a forward purchase contract through the forward contract and pays the supplier. On August 15 the company sells the merce zust 1 the company purchases the Singapore dollars customer for $900,000 in cash. Assume the company records cost of goods sold when the sales August 15 the company sells the merchandise to a U.S. company's fiscal year ends June 30. cords cost of goods sold when the sale is made. The Relevant rates (S/SS) are as follows: May 1 June 30 August 1 Spot Rate $0.752 0.741 0.738 Forward Rate for August 1" Delivery $ 0.7548 0.740 0.738 red