Neeves New Zealand Imports has agreed to purchase 16,000 cases of New Zealand wine for 3 million New Zealand dollars at today's spot rate. The firm's financial manager, Hinda Wilson, has noted the following current spot and forward rates:

 

                                                             New Zealand Dollar/Canadian Dollar

Spot                                                                    1.110

30-day forward                                                 1.115 

90-day forward                                                 1.120 

180-day forward                                               1.130

On the same day, Wilson agrees to purchase 16,000 more cases of wine in 3 months at the same price of 3 million New Zealand dollars.

a. What is the price of the wine in Canadian dollars if it is purchased at today's spot rate? 

b. What is the cost in Canadian dollars of the second 16,000 cases if payment is made in 90 days and the spot rate at that time equals today's 90-day forward rate?

c. If the exchange rate for the New Zealand dollar is 1.06 to $1 in 90 days, how much will Wilson have to pay for the wine (in Canadian dollars)?