As the owner of a multinational enterprise (MNE) located in Malaysia, you believe the ringgit (MYR) will

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As the owner of a multinational enterprise (MNE) located in Malaysia, you

believe the ringgit (MYR) will depreciate further against UD dollar in the coming six (6) months. Assume today is 20 March 2020, your MNE in

Malaysia has just bought fabrics from a U.S. company, with payment of $1

million due in 6 months. Given the current spot rate (MYR/USD) quoted in the

above newspaper article, the six-month forward rate is MYR/USD 4.4252-4270,

and you expect the spot rate to reach MYR/USD 4.4340-4357 in the coming six

months, calculate the implicit gains or losses on this position in MYR.

Posted Date: May 19, 2024 03:02 AM

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As the owner of a multinational enterprise (MNE) located in Malaysia, you believe the ringgit (MYR) will

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