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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 tableCURRENCYLENDING RATE,BORROWING RATEUS dollars,of $ for the New Zealand dollar on day It can borrow New Zealand dollars, convert them to US dollars, and lend the US dollars out. On day it will close out these positions. Using the rates quoted in the previous example and assuming that the firm can borrow NZ$ million,
What steps should Carbondale take?
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