Use the following information to answer questions $37$ to $40$Harmony of Manhattan, New York, is building a new factory in Malaysia. In three months, the company has to pay RM $30,000,000.$ The currency is Malaysian Ringgit. Harmonys weighted average cost of capital is $15\%.$ The foreign exchange and interest quotations are the following: Construction payment due in three months $($A$/$P$,$ Ringgit$)30,000,000$Present spot rate $($RM$/$$$)4\mathrm{.}0000$Three$-$month forward rate $($RM$/$$$)4\mathrm{.}2000$Malaysian three$-$month interest rate $($per annum$)8\mathrm{.}000\%$U$.$S$.$ dollar six$-$month interest rate $($per annum$)4\mathrm{.}000\%$Harmonys weighted average cost of capital $($WACC$)15\mathrm{.}000\%$ Harmonys treasury manager, concerned about the exchange rate fluctuations, contemplates hedging its foreign exchange risk. The managers own forecast is as follows:Expected spot rate in six$-$months $($RM$/$$$)$: Highest expected rate $($reflecting a significant devaluation$)4\mathrm{.}8000$ Expected rate $4\mathrm{.}5000$ Lowest expected rate $($reflecting a strengthening of the RM$)3\mathrm{.}8000$ Harmony can remain unhedged, purchase ringgit forward or invest. Calculate the cost of each alternative $37.$ Wait six months and make payment at spot rate: choose the correct values corresponding to the expected rates given.A$.$ $ $6,250,000\mathrm{.}00,$ $ $6,666,66\mathrm{.}67,$ $ $7,894,736\mathrm{.}84$B$.$ $ $6,350,000\mathrm{.}00,$ $ $6,766,66\mathrm{.}67,$ $ $8,894,736\mathrm{.}84$C$.$ $ $6,250,000\mathrm{.}00,$ $ $6,766,66\mathrm{.}67,$ $$7,894,736\mathrm{.}84$D$.$ $ $6,250,000\mathrm{.}00,$ $ $6,666,66\mathrm{.}67,$ $ $8,894,736\mathrm{.}84$E$.$ $ $7,500,000\mathrm{.}00,$ $ $7,142,857\mathrm{.}14,$ $ $7,894,736\mathrm{.}8438.$ Purchase Ringgit forward $3-$months:A$.$ $ $6,666,66\mathrm{.}67$B$.$ $ $7,142,857\mathrm{.}14$ C$.$ $ $7,500,000$D$.$ $$7,894,736\mathrm{.}84$E$.$ $$6,250,00039.$ Transfer dollars to Ringgit today, invest for $3-$months:A$.$ $ $7,352,941\mathrm{.}18$B$.$ $ $7,500,000$C$.$ $$7,628,676\mathrm{.}47$D$.$ $$7,650,000$E$.$ $$7,575,00040.$ Choose the best alternativeA. Remain UnhedgedB. All the alternatives are equally goodC. Transferring dollars to Ringgit and investing them for $3-$monthsD. Forward ContractE. More information is needed