Problem
Philip, a U.S. U.S.-basedbased multinational enterprise, is evaluating an export sale of its drug with a Malaysian distributor. The purchase would be for MYR100 million, wich at the current spot exchange rate of MYR4.400/$. Although not a big sale by company standards, company policy dictates that sales must be settled for at least a minimum gross margin, in this case, a cash settlement of $168,000. The current 90-day forward rate is MYR4.420/$. The forecasted exchange rate is MYR4.410/$ over the coming 90 to 120 days. How much money will be received in the forward market?