What is the cost of money market hedge for coleman co

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Reference no: EM133331764

Question: Coleman Co., an Australian company, will pay 1.33 million Malaysian ringgit (MYR) to its' Malaysian supplier in one-year. To avoid transaction exposure, the company wants to take the money market hedge strategy using the spot rate A$0.4153/MYR and 6.08% deposit rate of MYR. What is the cost of money market hedge for Coleman Co. with 3.26% borrowing rate of A$? (enter the whole number without sign or symbol).

Reference no: EM133331764

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