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 a) YTM (M) Bhd expects to receive ¥185 million in export payment from Japan in 90 days

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 a) YTM (M) Bhd expects to receive ¥185 million in export payment from Japan in 90 days. The current spot rate is RM3.6112 / ¥100 and the 90-day forward rate is RM3.6008 / ¥100. The 90-day interest rate in Malaysia and Japan is 3.5% p.a. and 6% p.a. respectively. i) Determine YTM (M) Bhd's transaction exposure associated with this receivables and Ringgit revenue if YTM is to forward cover this transaction. (4 marks) ii) Compute the Ringgit revenue if YTM is to money market cover this transaction. (5 marks) iii) Decide and justify which is the better hedging method. (1 mark)