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The spot rate between the U.S. dollar and the New Zealand dollar is $1 = NZD1.1867. Assume the interest rate in the United St

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Answer #1
Future rate=Spot rate*((1+Quoted currency Risk free rate)/(1+Base currency Risk free rate))^time
Future rate=1.1867*((1+0.04)/(1+0.05))^0.25
Future rate(NZD/USD) = 1.1839
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