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Use these data for the following 2 questions (Total Mark: 2). Wesfarmers, headquartered in Perth, Western Australia, would like to hedge its $50 million payable

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Use these data for the following 2 questions (Total Mark: 2). Wesfarmers, headquartered in Perth, Western Australia, would like to hedge its $50 million payable to the U.S. supplier, which is due in 180 days. Suppose it faces the following exchange and interest rates. Spot rate: AUDO.6780-95/USD Forward rate: AUDO.6800-50/USD U.S. dollar 180-day interest rate (annualized): 4.80%-4.76% Australian dollar 180-day interest rate (annualized): 5.60%-5.40% Question A. What would be the hedged cost of the payable using the forward market? AUD Question B. What would be the hedged cost of the payable using the money market hedge? AUD

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