Question
Assume the following spot and forward rates for the New Zealand dollar ($/NZD). Spot rate $0.9477 30-day forward rate $0.9519 90-day forward rate $0.9569 120-day
Assume the following spot and forward rates for the New Zealand dollar ($/NZD).
Spot rate $0.9477 30-day forward rate $0.9519 90-day forward rate $0.9569 120-day forward rate $0.9602
a) What is the Canadian dollar value of one New Zealand dollar in the spot market? b) Suppose you issued a 90-day forward contract to exchange 100,000 New Zealand dollars into Canadian. dollars. How many Canadian dollars are involved? c) How many New Zealand dollars can you get for one Canadian dollar in the spot market? d) If the spot rate for the US dollar is $1.0915, what is the USD price for one NZD?
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