PSO India. Procter and Gamble's affliate in india, PSG India, procures much of its toletries...

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PSO India. Procter and Gamble's affliate in india, PSG India, procures much of its toletries product line from a Japanese company. Because of the shortage of working capita in india, payment terms by Indian importers are typicaly 180 days or longer. P\&G India wishes to hodge an 8.4 million Japanese yen payable. Athough options are not availabie co the indian rupee (Rs), farward ra are avallable against the yen. Adetionally, a common practice in India is for companies like P\&G India to work with a currency agent who wal, in this case, lock in the current spot exchange nare in exchange for a 5.04% toe. Using the exchange rate and interest rate data in the popup window, , compare alternate ways below that P\&O india might deal with its toreign exchange exposure Assume a 360-day financial year. a. How much in indian rupees will PGG india pay in 180 days without a hedge if the expected spot rate in 180 days is assumed to be 2.52673/Rs? Y2.4107/Rs? V2.5804Rs? b. How much in indian rupees will PSG India pay in 180 days with a forward market hedge? c. How much in indian rupees will PSG india pay in 180 days with a money market hedge? d. How much in indian rupees will PSG India pay in 180 days with a currency agent hedge? e. What do you recommend? a. How much in indian rupees will P8G India pay in 180 days without a hedge if the expected spot fate in 180 days is assumed to be V2.52673/Rs? Ra (Round to the nearest whole number.) How much in indian rupees will PBG Inda pay in 180 days without a hedge if the expected spot rate in 180 days is assumed to be Y2.4107/Rs? Ra. (Round to the nearest whole number.) How much in indian nupees will P8G india pay in 180 days without a hedge if the expected spot rate in 180 days is assumed to be V2. 5804/Rs ? Fs (Round to the nearest whole number.) b. How much in Indian rupees will PSG india pay in 180 days with a forward market hedge? R: (Round to the nearest whole number.) c. How much in indian rupees will PSG India pay in 180 days with a money market hedge? Rs. (Round to the nearest whole number) d. How much in Indian rupees will P\&G India pay in 180 days with a currency agent hedge? (Round to the nearest whole number.) e. What do you recommend? (Select from the drop-down menu.) The provides the lowest certain cost hedging method for payment settlement. Data table

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