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 0.53 in 30 day5. 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. After exchanging $40,000,000 for New Zealand dollars, Denver Financial will have NZ (New Zealand dollars). Suppose that California Coy a U.S. based MNC, seeks to capitalize a difference in interest rates between euros and British pounds vla the use of a carry trade. In particular, after 1 month, funds invested in euros will yield a 0.50% percent return, while funds invested in pounds will yield a return of 2.00% percent. Currently the spot rate of the British pound is $1.00 while the spot rate of the euro is $0.80. In other words, the pound is worth 1.25 euros. Calfornla Co. expects these spot rates to remain constant over the next month. If California Co. takes $200,000 of its own funds and converts them to pounds it would have 500,000 euros and converts them to pounds, it will havepounds