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An Australian exporting company will be paid 2,500,000 NZD in 3 months' time. The firm sells NZD forward to hedge this exposure. Current Spot: 1.080
An Australian exporting company will be paid 2,500,000 NZD in 3 months' time.
The firm sells NZD forward to hedge this exposure.
Current Spot: 1.080 / 1.085 AUD/NZD
3-Month Forward Rate: 1.120 / 1.125 AUD/NZD
Expected 3-Month Spot: 1.115 / 1.120 AUD/NZD
How many AUD will the Australian exporting company receive? (round to the nearest dollar)
2,242,152 AUD
2,232,143 AUD
2,222,222 AUD
2,304,147 AUD
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