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Please provide answer in excel. Assume the following information Current spot rate of New Zealand dollar=$0.41 Forecasted spot rate of New Zealand dollar 1 year
Please provide answer in excel.
Assume the following information
Current spot rate of New Zealand dollar=$0.41
Forecasted spot rate of New Zealand dollar 1 year from now=$0.43
One-year forward rate of the New Zealand dollar=$0.42
Annual interest rate on New Zealand dollars=0.075
Annual interest rate on U.S. dollars=.09
Given the information in this question, the return from covered interest arbitrage by U.S. investors with ${I} to invest is about
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