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Assume that coras Corp. Imported goods from New Zealand and needs 140,000 New Zealand dollars 100 days from now. It is trying to determine whether

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Assume that coras Corp. Imported goods from New Zealand and needs 140,000 New Zealand dollars 100 days from now. It is trying to determine whether to hedge this position. Loras has developed the following probability distribution for the New Zealand dollars POSSIBLE VALUE OF NEW ZEALAND DOLLAR IN 180 DAYS PROBABILITY $0.41 490 0.45 7 0.46 25 0.50 26 0.53 21 0.55 16 The 180-day forward rate of the New Zealand dollar la 50.51. The spot rate of the New Zealand dollar is $0.46. Develop a table showing a robility analysis for hedging. That is, determine the possible differences between the costs of hedging versus no bodging, Use a minus sign to enter a negative value, if any, Round your answers to the nearest dollar Amount of Possible Spot Nominal Cost U.S. Dollars Needed Rate of New of Hedging to Buy 140,000 NZS Real Cost of Zealand Dollar Probability 140,000 NZS if Firm Remains Unhedged Hedging 30.41 40 50.45 1 50.46 $ $0.50 269 $ 30.53 3 50.55 16 5 The 180-day forward rate of the New Zealand dollar is $0.51. The spot rate of the New Zealand dollar is 50.46. Develop a table showing a feasibility analysis for hedging. That is, determine the possible differences between the costs of hedging versus no hedging. Use a minus aign to enter a negativ value, if any. Round your answers to the nearest dollar. Amount of Possible Spot Nominal Cost U.S. Dollars Needed Rate of New of Hedging to Buy 140,000 NZS Real Cost of Zealand Dollar Probability 140,000 NZ$if Firm Remains Unhedged Hedging $0.41 $ 5 $0.45 79 $ $0.46 26 5 s $0.50 26 $ 5 $0.53 $0.55 16 $ $ $ $ 5 2190 $ 5 $ $ What is the probability that hedging will be more costly to the firm than not hedging Round your answer to the nearest whole number % Determine the expected value of the additional cost of hedging. Round your answer to the nearest dollar

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