Beta Inc. is an American firm that will pay MYR 532,000 in one month. The company would like to hedge the transaction exposure using forward contracts. At the moment, the spot exchange rate for a Malaysian Ringgit is 2.2007 US dollars. The one-month forward rate quoted by a local bank for a Malaysian Ringgit is 1.964 US dollars. Beta Inc. will:.....?

Answer rating: 100% (QA)

Beta Inc will enter into a forward contract to hedge its transaction exposure Heres how the company ... View the full answer