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Compute the mark-to- market value of the following long forward NZD (New Zealand Dollar) contract. The size of the long position is NZD 450,000 and

Compute the mark-to- market value of the following long forward NZD (New Zealand Dollar) contract. The size of the long position is NZD 450,000 and the forward rate is Fn USD/NZD= 0.66; the current spot rate (at time of valuation) X0 USD/NZD= 0.64. The NZD and USD interest rate are: rNZD= 9% and rUSD= 3%; assume the contract matures in two years from now (so at t=2). Please calculate the forward price and mark to market value.

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