Question: QUESTION 1 (10 MARKS) Given the following information on the exchange and interest rates in Malaysia and Singapore: Bid Ask Spot Exchange Rates SGD 0.34-0.36/MYR

QUESTION 1 (10 MARKS) Given the following information on the exchange

QUESTION 1 (10 MARKS) Given the following information on the exchange and interest rates in Malaysia and Singapore: Bid Ask Spot Exchange Rates SGD 0.34-0.36/MYR 3-month Forward Rates SGD 0.30 -0.32/MYR Interest Rate in Malaysia 4% per annum Interest Rate in Singapore 2% per annum Assuming you currently have MYR100.000 that can be invested for 3 months, where should the money be invested to earn higher return? Show your calculation clearly and explain your justification

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