Assume the following spot and forward rates for the New Zealand dollar ($/NZD).
Spot rate $.6317
30 day forward rate $.6330
60 day forward rate $.6353
90 day forward rate $.6387
(Q1) What is the U.S. dollar value of one New Zealand dollar in the spot market?
(Q2) Suppose you issued a 90-day forward contract to exchange 100,000 New Zealand dollars into U.S. dollars. How many U.S. dollars are involved?
(Q3) How many New Zealand dollars can you get for one U.S. dollar in the spot market?
(Q4) What is the 120-day forward premium?