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Suppose the 6-month risk free spot rate in HKD is 1% continuously compounded, and the 6- month risk free rate in NZD is 3%

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Suppose the 6-month risk free spot rate in HKD is 1% continuously compounded, and the 6- month risk free rate in NZD is 3% continuously compounded. The current exchange rate is 5 HKD/NZD. (a) Suppose our usual assumptions hold, i.e., no constraints or other frictions. What is the f orward exchange rate with 6 months to maturity such that there is no arbitrage?

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