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Assume that Carbondale Co . expects an exchange rate table [ [ CURRENCY , LENDING RATE,BORROWING RATE ] , [ U . S .

Assume that Carbondale Co. expects an exchange rate \table[[CURRENCY,LENDING RATE,BORROWING RATE],[U.S. dollars,6.72%,1.20%of $0.48 for the New Zealand dollar on day 30. It can borrow New Zealand dollars, convert them to U.S. dollars, and lend the U.S. dollars out. On day 30, it will close out these positions. Using the rates quoted in the previous example and assuming that the firm can borrow NZ$40 million,
What steps should Carbondale take?
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