Please show how answer is derived. Assume that Kolman Co. will receive NZ900,000 in 60 days....

Please show how answer is derived. Assume that Kolman Co. will receive NZ900,000 in 60 days. The spot rate of the New Zealand dollar is $.69, and the 60-day forward rate is $.715. Kolman has developed the following probability distribution for the spot rate in 90 days:
	Possible Spot Rate
	in 90 Days	Probability
	$0.69	10%
	$0.70	20%
	$0.71	40%
	$0.75	30%

What is the probability that the forward hedge will result in more dollars received than not hedging is:

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jeff jeffy answered 1 year ago

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