Question
The spot rate between the U.S. dollar and the New Zealand dollar is $1 = NZD1.3360. Assume the interest rate in the United States is
The spot rate between the U.S. dollar and the New Zealand dollar is $1 = NZD1.3360. Assume the interest rate in the United States is 8 percent and in New Zealand is 4 percent. What should be the 3-month forward exchange rate? (Do not round intermediate calculations. Round your answer to 4 decimal places.)
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Foundations Of Financial Management
Authors: Stanley B. Block, Geoffrey A. Hirt, Bartley R. Danielsen
13th Edition
0073382388, 978-0073382388
