Suppose that Denver Financial Co. expects the exchange rate of the New Zealand dollar (NZ$) to appreciate from its current level of 0.5 to 0.52 in 30 days. Denver Financial seeks to capitalize on this potential opportunity.

Suppose that Denver Financial begins by borrowing $40,000,000 and converting it to New Zealand dollars (NZ$).

The following table shows the short-term interest rates (annualized) in the interbank market.

Currency	Lending Rate	Borrowing rate
	(Adjusted for 30-day period)	(Adjusted for 30-day period)
U.S. Dollars	6.72%	7.20%
New Zealand Dollars (NZ$)	6.48%	6.96%

After exchanging $40,000,000 for New Zealand dollars, Denver Financial will have NZ (New Zealand dollars).