Question: PLEASE ANSWER FAST. WILL UPVOTE IF YOU DO ALL THE PARTS. FAST. Question 4 Europa Co is a German company (uses Euros) that has important

PLEASE ANSWER FAST. WILL UPVOTE IF YOU DO ALL THE PARTS. FAST.

PLEASE ANSWER FAST. WILL UPVOTE IF YOU DO ALL THE PARTS. FAST.

Question 4 Europa Co is a German company (uses Euros) that has important suppliers in Singapore. It is due to make a payment to a Singaporean supplier of SGD750,000 in 3 months. Foreign exchange rates: SGD/EUR Spot Two months forward Three months forward 1.611 - 1.671 1.642 - 1.713 1.689 - 1.734 Annual interest rates: Borrowing (%) 5.20 Investing (%) 4.10 0.90 0.50 United Kingdom Germany Singapore Canada 1.30 2.10 1.10 1.60 a) Calculate the results from a Forward Market Hedge. Assume the company has no surplus cash. [3 marks] b) Calculate the results from a Lead Payment Hedge. Assume the company has no surplus cash. [4 marks] c) Calculate the results from a Money Market Hedge. Assume the company has no surplus cash. [9 marks] d) Based on your calculations from (a) - (c), select which is the most cost-effective hedge. [3 marks] e) List an advantage and a disadvantage of - Forward Market Hedge - Lead Payment Hedge - Money Market Hedge [6 marks]

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