Also Assume That a U

question 51

Multiple Choice

$$\begin{array} { l l r } \text { U.S. deposit rate for 1 year } & = & 11 \% \\\text { U.S. borrowing rate for 1 year } & = & 12 \% \\\text { New Zealand deposit rate for 1 year } & = & 8 \% \\\text { New Zealand borrowing rate for 1 year } & = & 10 \% \\\text { New Zealand dollar forward rate for 1 year } & = & \$ .40 \\\text { New Zealand dollar spot rate } & = & \$ .39\end{array}$$
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) $238,584.
• B) $240,000.
• C) $234,000.
• D) $236,127.

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Definitions:

Valid Taxonomic Group

A group of organisms recognized by taxonomists to form a category in the hierarchy of biological classification.

Monkeys

Primates typically characterized by a tail, often arboreal with complex behaviors and high intelligence.

Co-Option

The process by which nature reuses an existing feature or trait for a new purpose, similar to exaptation.

Phylogeny

The evolutionary history and lineage of species or other taxonomic groups of organisms, often illustrated with a phylogenetic tree.