1.Keywise Inc is an American-based gaming company that will receive MYR 2,106,000 in a year....
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1.Keywise Inc is an American-based gaming company that will receive MYR 2,106,000 in a year. The annual interest rate in Malaysia is 8% and the interest rate in the U.S. is 5%. The spot rate is USD 0.6395/MYR and the forecasted rate for a Malaysian Ringgit is 0.598 US dollars. If the company wants to lock in the exchange rate using the money market hedge, how much should it invest in the United States?
a.1,309,376
b.1,247,025
c.1,282,654
d.1,166,100
2. Keywise Inc is an American-based gaming company that will pay MYR 2,767,000 in a year. The annual interest rate in Malaysia is 12% and the interest rate in the U.S. is 10%. The spot rate is USD 2.9475/MYR and the forecasted rate for a Malaysian Ringgit is 2.5879 US dollars. If the company wants to lock in the exchange rate using the money market hedge, how much should it borrow in the United States?
a.6,393,499
b.7,281,904
c.7,414,302
d.8,010,094
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