Business, 20.03.2020 05:16 dthompson365

Assume the following information: U. S. deposit rate for 1 year = 11% U. S. borrowing rate for 1 year = 12% New Zealand deposit rate for 1 year = 8% New Zealand borrowing rate for 1 year = 10% New Zealand dollar forward rate for 1 year = $.40 New Zealand dollar spot rate = $.39 Also assume that a U. S. exporter denominates its New Zealand exports in NZ$ and expects to receive NZ$600,000 in 1 year. You are a consultant for this firm. Using the information above, what will be the approximate value of these exports in 1 year in U. S. dollars given that the firm executes a money market hedge?

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Assume the following information: U. S. deposit rate for 1 year = 11% U. S. borrowing rate for 1 yea...

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