Assume the Following Information

question 47

Multiple Choice

Assume the following information:
Current spot rate of New Zealand dollar = $.41
Forecasted spot rate of New Zealand dollar 1 year from now = $.43
One-year forward rate of the New Zealand dollar = $.42
Annual interest rate on New Zealand dollars = 8%
Annual interest rate on U.S.dollars = 9%
Given the information in this question,the return from covered interest arbitrage by U.S.investors with $500,000 to invest is _______%.

• A) about 11.97
• B) about 9.63
• C) about 11.12
• D) about 11.64
• E) about 10.63

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Definitions:

Hard Stools

Feces that are firm or difficult to pass, often a symptom of constipation.

Fecal Collection

The process of collecting stool samples for testing or diagnostic purposes, often used to detect infections, inflammation, or digestive conditions.

Peristalsis

The series of wave-like muscle contractions that moves food through the digestive tract.

Nasogastric Tube Placement

The insertion of a flexible tube through the nose, down the esophagus, and into the stomach for feeding, medication administration, or gastric decompression.