If the spot rate is NZ$0.50/$ and the forward rate is NZ$0.55/$. The spot exchange rate and the forward rate are C$1.03/$ and C$1.07/$. Compute the percentage change in the NZ$/C$ during this period. a. -5.89% b. 5.89% C. -5.56% d. 5.56%

If the spot rate is NZ$0.50/$ and the forward rate is NZ$0.55/$. The spot exchange rate and the forward rate are C$1.03/$ and C$1.07/$. Compute the percentage change in the NZ$/C$ during this period. a. -5.89% b. 5.89% C. -5.56% d. 5.56%

International Financial Management

14th Edition

ISBN:9780357130698

Author:Madura

Publisher:Madura

Chapter20: Short-term Financing

Section: Chapter Questions

Problem 4ST

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Question

If the spot rate is NZ$0.50/$ and the forward rate is NZ$o.55/$. The spot exchange rate and the
forward rate are C$1.03/$ and C$1.07/$. Compute the percentage change in the NZ$/C$ during
this period.
a. -5.89%
b. 5.89%
C. -5.56%
d. 5.56%

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