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Victoria Corporation, a US firm, needs to pay NZ$1,000,000 in 30 days. Given: New Zealand interest rates : 6.00% - 6.18% per annum US interest
Victoria Corporation, a US firm, needs to pay NZ$1,000,000 in 30 days.
Given: New Zealand interest rates : 6.00% - 6.18% per annum US interest rates : 8.00% - 8.40% per annum Spot rate : $0.6480/NZ$ - $0.6500/NZ$
Devise and determine Victoria Corporation's hedged value in $
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