Question
5. A New Zealand company receives the following indirect quotes for the spot and threemonth forward rates for NZD/USD. Bid Ask Spot rate 0.647 0.652
5. A New Zealand company receives the following indirect quotes for the spot and threemonth forward rates for NZD/USD.
Bid Ask
Spot rate 0.647 0.652
Three-month forward rate 0.633 0.639
(a)What would you receive in NZD if you sold USD 1.5 million at the spot rate?
(b) What would it cost you in NZD to purchase a USD 2 million three-month forward contract
how would i answer these questions best in a finance exam?
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Financial Management for Public Health and Not for Profit Organizations
Authors: Steven A. Finkler, Thad Calabrese
4th edition
133060411, 132805669, 9780133060416, 978-0132805667
