You are responsible to source for short term financing to be used in 3 month's time to pay your supplier

Finance May 05, 2023

You are responsible to source for short term financing to be used in 3 month's time to pay your supplier. The financing needed is US$250,000. Your banker informed that the interest rates in Malaysia and the US are 9% and 8% per annum respectively. The current spot exchange rate is RM3.6338/US$ and the 3 month forward is RM3.6399/US$. Determine how could you take advantage of interest rates differential and the availability of the forward market to secure your funds