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Business, 12.11.2019 03:31 johnandashley5p65r4a

Assume the following information:

u. s. deposit rate for 1 year = 11%
u. s. borrowing rate for 1 year = 12%
new zealand deposit rate for 1 year = 8%
new zealand borrowing rate for 1 year = 9%
new zealand dollar forward rate for 1 year = $.40
new zealand dollar spot rate = $.39

also assume that a u. s. exporter denominates its new zealand exports in nz$ and expects to receive nz$600,000 in 1 year. you are a consultant for this firm.

using the information above, what will be the approximate value of these exports in 1 year in u. s. dollars given that the firm executes a money market hedge?
a) $238,294.
b) $232,591
c) $234,000.
d) $236,127.

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Assume the following information:

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u. s. borro...
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