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Assume the following information: U.S. deposit rate for 1 year -11% U.S. borrowing rate for 1 year -12% New Zealand deposit rate for 1
Assume the following information: U.S. deposit rate for 1 year -11% U.S. borrowing rate for 1 year -12% New Zealand deposit rate for 1 year-8% New Zealand borrowing rate for 1 year -10% New Zealand dollar forward rate for 1 year $0.40 New Zealand dollar spot rate $0.39 Also assume that a U.S. exporter denominates its New Zealand exports in NZS and expects to receive NZS600,000 in 1 year. You are a consultant for this firm. Using the information above, what will be the approximate value of these exports in 1 year in U.S. dollars given that the firm executes a money market hedge? $236,127. O $360,000 $240,000 $238,584
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