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Assume that Stevens Point Co. has net receivables of 200,000 Singapore dollars in 60 days. The...

  1. Assume that Stevens Point Co. has net receivables of 200,000 Singapore dollars in 60 days. The spot rate of the S$ is $0.80, and the Singapore periodic interest rate is 1.5% over 60 days (annual rate is 9% per year, so periodic rate is 1.5% per 60 days). Assume US periodic interest rates of 0.5% over 60 days or (annual rate is 6%, so periodic rate is 0.5% per 60 days). If the U.S. firm could implement a money market hedge, what is the value of the receivables in US dollars in 60 days using a money market hedge? Assume borrowing and lending rates are the same for simplicity. Be precise.
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