a. Today, the stock price of Kiwi Company (based in New Zealand) is priced at NZ60 per share. The spot rate of the New Zealand dollar (NZ) is $.64. During the next year, you expect that the stock price of Kiwi Company will decline by 8%. You also expect that the Australian dollar will depreciate against the U.S. dollar by 9% during the next year. You own American depository receipts (ADRs) that represent Kiwi stock. Each share that you own represents three shares of the stock traded on the New Zealand stock exchange. What is the estimated value of the ADR per share in one year? (3 marks)

b. Today you notice the following exchange rate quotations: *S1 is equal to 4.00 Chilean pesos *I Chilean peso = 0.40 Canadian dollars *You need to purchase 150,000 Canadian dollars with U.S. dollars. How many U.S. dollars will you need for your purchase? (3 marks)