(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?

5. A New Zealand company receives the following indirect quotes for the spot and three- month 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