Question 24 (3.33 points) Starwood Co. is expecting to receive 800.000 New Zealand dollars in one year Starwood expects the spot rate of New Zealand dollar to be $0.60 in a year, so it decides to avoid exchange rate risk by hedging its receivables. The spot rate of the New Zealand dollar is quoted at $0.70. The one-year forward rate exhibits a 10% discount. How does Starwood Co. use forward contracts to hedge the exchange rate risk for the 800,000 New Zealand dollars receivables and how many U.S. dollars Starwood Co. will receive? Sell New Zealand dollars forward and receive $432,000. Sell New Zealand dollars forward and receive $560.000. Sell New Zealand dollars forward and receive $504.000. Sell New Zealand dollars forward and receive $480.000. Question 25 (3.33 points) Marriot Co., a Canadian firm, purchases a futures contract specifying GBP100.000 with the June settlement date. This futures contract is priced at $1.63/GBP. On February 1st. Marriot Co, realizes that it has no need for GBP in June. It thus sells a futures contract specifying GBP100,000 with the June settlement date. This futures contract is priced at C$1.68/GBP. What is the result of these transactions to Marriot Co.? Marriot Co. incurs a profit of GBP5,000. Marriot Co. incurs a loss of C$5,000. Marriot Co. incurs a loss of GBP5,000. Marriot Co. Incurs a profit of C$5,000