6. Procter & Gamble, Inc., a U.S.-based MNC, will receive 18 million Dominican pesos on December 1. It is now September 1. Procter & Gamble has negotiated a non-deliverable forward contract with its bank. The reference rate is the Dominican peso's closing exchange rate (in $) quoted by the central bank of the Dominican Republic in 90 days. The Dominican peso's spot rate today is $.021. If the rate quoted by the central bank of the Dominican Republic on December 1 is $.019, Procter & Gamble will ____ $____.

Question options: A. pay; 360,000 B. be paid; 360,000 C. pay; 36,000 D. be paid; 36,000

7. Baylor Bank believes the New Zealand dollar will depreciate over the next five days from $.50 to $.48. The following annual interest rates apply: Currency Lending Rate Borrowing Rate Dollars 7.10% 7.50% New Zealand dollar (NZ$) 6.80% 7.25% Baylor Bank has the capacity to borrow either NZ$10 million or $5 million. If Baylor Bank's forecast is correct, what will its dollar profit be from speculation over the five-day period (assuming it does not use any of its existing consumer deposits to capitalize on its expectations)?(30/360 convention used for the interest calculation, i.e., assuming 360 days a year)

Question options: A. 310,734 B. 200,097 C. 208,044 D. 250,019 E. 280,675

8. Johnson & Johnson, Inc., a U.S.-based MNC, will receive 200 million Colombian Pesos on December 1. It is now September 1. Johnson & Johnson has negotiated a non-deliverable forward contract with its bank. The reference rate is the Colombian Peso's closing exchange rate (in $) quoted by Colombia's central bank in 90 days. The Colombian Peso's spot rate today is $.00029. If the rate quoted by Colombia's central bank on December 1 is $.00032, Johnson will ____ $____.

A. be paid; 60,000 B. be paid; 6,000 C. pay; 6,000 D. pay; 60,000