If the Spot Rate Between the U

question 60

Multiple Choice

If the spot rate between the U.S. dollar and the New Zealand dollar is $1 = NZD1.5215, and if the interest rate in the United States is 8 percent and in New Zealand is 4 percent, then what should be the three-month forward exchange rate?

• A) $0.6637
• B) $0.6572
• C) $0.6825
• D) $0.6329

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