Question: Question 29 1 pts Use for the next two questions On September 15, 2020. Food Exporters USA, Inc. exported products to a New Zealand firm

Question 29 1 pts Use for the next two questions On

Question 29 1 pts Use for the next two questions On September 15, 2020. Food Exporters USA, Inc. exported products to a New Zealand firm and expected to receive payment of NZ$1,000,000 in three months (December 15, 2020). On September 15: spot rate was $0.7200/NZ$ 3-month forward rate was $0.7100/NZ$ 3-month futures rate (for the futures that expires in December) was $0.7150/NZ$. On December 15: spot rate was $0.6950/NZ$ futures rate was $0.6950/NZ$. Suppose that on September 15, 2020, the following additional information was available in the options market for the New Zealand dollar: Strike [$/NZ$) Call [USC/NZ$] Put [US/NZ$1 Expiration 0.7200 1.51 1.34 Dec 15, 2020 If on September 15, Food Exporters USA had hedged using options, they would have made a net of for the NZ$1,000,000. O profit: $11,600 O profit; $25,000 loss: $11,600

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