16. Peeptrade Corp., a US-based MNC, has payables of 100,000 New Zealand dollars due in 90 days. The spot rate of the New Zealand dollar is $.70, and the New Zealand interest rate is 1.2% over 90 days. How can Peeptrade implement a money market hedge for its payables? Be specific. (6 points)

17. Assume the CAD = $.90 and the NZD = $.30. Brady Bank provides a cross-quote of CAD/NZD = 2.90 (1 CAD = 2.90 NZD). Will triangular arbitrage work here assuming no transaction costs? If yes, explain how to implement it and what the profit will be?