The spot rates, 3- month forward rates and 3-month future (speculation) spot rates for the MYR respectively are as below:

	Buy	Sell
	MYR/$
Spot	4.5311	4.6311
3-month Forward	4.5445	4.6445
3-month Future (speculation)	4.7645	4.8645

US interest rates: 2% per annum

Malaysia interest rates: 4 % per annum

If your company is prepared to put MYR 1 million at risk on the deal, show and name clearly at least TWO possible strategies that might be taken by you. Ignore whether the strategies could result to a loss or gain. Consider all interest rate implications.

Answer rating: 100% (QA)

Since the base cuse 2ur he Cts SpotHYB 3manthe feowak... View the full answer