I. Assume the following spot and forward rates for the New Zealand dollar (US$/NZD). Spot Rate US$ 0.6317 per NZD 30-day forward rate US$ 0.6330 per NZD 90-day forward rate US$ 6353 per NZD a) Suppose you issued a 30-day forward contract to exchange 200,000 New Zealand dollars into U.S. dollars. How many U.S. dollars do you get? b) What is the 30-day forward discount/premium? Is the NZD selling at a discount or a premium?
II. Suppose a Swedish krona sells for $0.1625 and a British pound sells for $1.6523. What is the exchange rate (cross rate) of the Swedish krona to the British pound? That is, how many Swedish kronas are equal to one British pound?
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