Question: You will need to acquire $1,000,000 USD using Malaysian ringgit for a transaction in a years time. Assume that you need purchase this currency for
You will need to acquire $1,000,000 USD using Malaysian ringgit for a transaction in a years time. Assume that you need purchase this currency for a local Vietnamese bank. Using the FX quotes from five Vietnamese banks, as well as the annual interest rates for both America and Malaysia, estimate the one-year forward rates. Select and explain which forward rate would be the best transaction (note: please provide all calculations as well as the screenshot of the banks exchange rates. These screenshots should be included in your report in the appendix after your references) (hint: consider the cross rate relationships)
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