Suppose you are a U.S. exporter expecting to receive a payment of NZD₁,000 (New Zealand dollars) in 12 months. The annual interest rate on NZD deposits is 5 percent, and the annual interest rate on dollar deposits is 9 percent. If the present exchange rate is $0.50 per NZD and interest rate parity holds, how many dollars do you expect to receive at the maturity date of the export contract?
A) $2,000
B) $1,923
C) $1,000
D) $580
E) $520

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The Answer of Suppose you are a U.S. exporter expecting to receive a payment of NZD₁,000 (New Zealand dollars) in 12 months. The annual interest rate on NZD deposits is 5 percent, and the annual interest rate on dollar deposits is 9 percent. If the present exchange rate is $0.50 per NZD and interest rate parity holds, how many dollars do you expect to receive at the maturity date of the export contract?
A) $2,000
B) $1,923
C) $1,000
D) $580
E) $520

Suppose You Are a U