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Compute the mark-to-market value

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Question: Compute the mark-to-market value of the following short forward NZD (New Zealand Dollar) contract. The size of the shortposition is NZD 450,000 and the forward rate is (fn) USD/NZD = 0.66 the current spot rate(at time of valuation)(X0) = 0.64 he NZD and USD interest rates are: r NZD=9%and r USD=3%; assume the contract matures in two years from now (so at t=2).

Reference no: EM132251734

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