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QUESTION 3 Assume the U.S. deposit rate for 1 year 11% 12% New Zealand deposit rate for 1 year New Zealand New Zealand dollar forward

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QUESTION 3 Assume the U.S. deposit rate for 1 year 11% 12% New Zealand deposit rate for 1 year New Zealand New Zealand dollar forward rate for 1 year New Zealand dollar spot rate 10% S.40 $.39 rate for 1 year Also assume that a US exporter denominates its New Zealand exports in NZS and expects to receive NZS600 000 in l year. You are a consultant be the approximate value of these exports in I year in U.S. dollars given that the firm executes a money market hedge? r this firm. Using the infr ation above what w a a $236,127 Ob$240,000 DC $238,584. d$234,000

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