Bid/Ask on Aussie Dollar Forward. Use the following spot and forward bid-ask rates for the U.S. dollar/Australian

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Bid/Ask on Aussie Dollar Forward. Use the following spot and forward bid-ask rates for the U.S.

dollar/Australian dollar (US$ = A$1.00) exchange rate from December 10, 2010, to answer the following questions:

a. What is the mid-rate for each maturity?

b. What is the annual forward premium for all maturities?

c. Which maturities have the smallest and largest forward premiums?

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Multinational Business Finance

ISBN: 9781292270081

15th Global Edition

Authors: David Eiteman, Arthur Stonehill, Michael Moffett

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