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1. Imagine that the interbank AUD / USD exchange rate was 0.8062 / 0.7995 and the five-month forward margins on the AUD were -93 /

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1. Imagine that the interbank AUD / USD exchange rate was 0.8062 / 0.7995 and the five-month forward margins on the AUD were -93 / -90. a) Do you think the AUD was selling at a forward premium or a forward discount to the USD? Why? b) Calculate the outright five-month forward quote. c) Using the bid quotations, calculate the annualised forward premium or discount on the AUD

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