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 0.55 in 30 days. Denver Financial seeks to capitalize on this potential opportunity.

Suppose that Denver Financial begins by borrowing $30,000,000 and converting it to New Zealand dollars (NZ$).

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	6.62%	7.10%
New Zealand Dollars (NZ$)	6.38%	6.86%

Suppose that Denver Financials initial loan of $30,000,000 must be repaid with a rate of 0.0059 after 30-days.

Hint: Assume 360 days in a year.

Thus, at the end of 30-days, Denver Financial must repay a total of $___________ (U.S. dollars) from the initial loan. In New Zealand dollars, at the new predicted 0.55 spot rate, this repayment would be equivalent to NZ $___________ (New Zealand dollars).

Fill in the blank.

Answer choices for the first blank.........(33,195,250, or 36,213,000, or 30,177,500, or 39,230,750)

Answer choices for the first blank..........(38,407,727.27, or 54,868,181.82, or 49,381,363.64, or 43,894,545.46)