Question: Please solve and show your work thank you :) Instructions Show all calcolatices in detail. No partial credit will be given for juste 1) Assume

Please solve and show your work thank you :)
Please solve and show your work thank you :) Instructions Show all

Instructions Show all calcolatices in detail. No partial credit will be given for juste 1) Assume the following information: U.S. deposit rate for 1 year 6% U.S. borrowing rate for 1 year 8% New Zealand deposit rate for 1 year 5X New Zealand borrowing rate for 1 year 7% New Zealand dollar forward rate for 1 year 5.45/N2$ New Zealand dollar spot rate = $.40/NZS Also assume that a U.S. exporter denominates its New Zealand exports in NS and expects to receive NZ$500,000 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? Borrow in New Zealand deters (5 500 000)/(1+0) N2 $46,289.72 Convert to USD N264219.92.40/24 [" 4166, 115.19 05 Invest USD ($176.43.14) (1+06) $147,136.94 Sandve of those ever beint vermogen der the firm its a winny

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!