On January 2, 202X, an American firm decided to close out its account at a New Zealand bank on February 28, 202X. The firm is expected to have 5 million New Zealand dollars in the account at the time of the withdrawal. It would transfer them to a New York bank in the U.S. dollars. The relevant spot exchange rate was $0.5964. The March New Zealand dollar futures contract was priced at $0.5941. Design a hedging strategy using the futures for this firm and show the outcome of the futures hedge if on Feb 28 the spot exchange rate was $0.5607 and the futures rate was $0.5620. The New Zealand dollar futures contract covers $New Zealand 100,000. All prices are in U.S. dollars per New Zealand dollar.