&Sign in MindTap - Cengage Learning X C 90-day U.S. interest rate2%90-day x + X G https:/g.cengage.com/staticb/ui/evo/index.html?deploymentld=59905950002024645218131232466&eISBN=9780357130599&id=2262485989&snapshotld=4071310& . . . Pa Import favorites For quick access, place your favorites here on the favorites bar. Manage favorites now Other favorites 9 James CENGAGE | MINDTAP Q Search this course ? Final Exam X A HOME Test: Final Exam PROFILE Save Submit Test for Grading Questions Problem 11.11 (Hedging Decision on Payables) Algo Question 14 of 20 ORDERS A-Z 12. RENTALS 13. 14 . eBook COURSES 15. Assume the following information: 16. 90-day U.S. interest rate 2% 17. 90-day Malaysian interest rate 4% Study Tools 18. 90-day forward rate of Malaysian ringgit $0.351 Spot rate of Malaysian ringgit $0.360 19. Assume that the Santa Barbara Co. in the United States will need 250,000 ringgit in 90 days. It wishes to hedge this payables position. Would it be better off using a forward hedge or a money market hedge? Substantiate your answer with estimated costs for College Success Tips 20. each type of hedge. Do not round intermediate calculations. Round your answers to the nearest dollar. The firm will pay out $ 87750 in 90 days if it uses the forward hedge and $ 87500 if it uses the money market hedge. Thus, it should use the [-Select- hedge. Career Success Tips ? Help SIGN OUT O- Icon Key Problem 11.11 (Hedging Decision on Payables) Algo Question 14 of 20 Save Submit Test for Grading