Show your work. 1. Assume teflowing information: 90-day U.S. interest rate 4% 90-day Malaysian interest rate-3% 90-day forward rate of Malaysian ringgit$.400 Spot rate of Malaysian i$.404 Assume that the Santa Barbara Co. in the United States will need 300,000 ringgit in 90 days. It wishes to hedge this payables position. Would it be better off using a forward hedge or a money market hedge? Substantiate your answer with estimated costs for each type of hedge. 2. Assume the following information: 180-day U.S. interest rate-896 180-day British interest rate-9% 180-day forward rate of British pound- $1.50 Spot rate of British pound- $1.48 Assume that Riverside Corp. from the United States will receive 400,000 pounds in 180 days. Would it be better off using a forward hedge or a money market hedge? Substantiate your answer with estimated revenue for each type of hedge