If the spot rate is NZ$0.50/S and the forward rate is NZS0.55/S. The spot exchange rate and the forward rate are C$1.03/$ and C$1.07/S. Compute the percentage change in the NZS/C$ 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
Chapter4: Exchange Rate Determination
Section: Chapter Questions
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If the spot rate is NZ$0.50/S and the forward rate is NZS0.55/S. The spot exchange rate and the
forward rate are C$1.03/$ and C$1.07/S. Compute the percentage change in the NZS/C$ during
this period.
a. -5.89%
b. 5.89%
c. -5.56%
d. 5.56%
Transcribed Image Text:If the spot rate is NZ$0.50/S and the forward rate is NZS0.55/S. The spot exchange rate and the forward rate are C$1.03/$ and C$1.07/S. Compute the percentage change in the NZS/C$ during this period. a. -5.89% b. 5.89% c. -5.56% d. 5.56%
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