1 of 3 ID: FRM.FU.CF.04 Australian 3 year interest rates are currently 7.74% pa continuously compounded, while in the USA they are 6.77% pa continuously compounded. Also 1.5200 Australian dollars (AUD) currently buys one US dollar (USD). Calculate the 3 year forward exchange rate. Give your answer to 3 decimal places. SAUD buys $USDI 2 of 3 ID:FRM.FU.COF.02 One-year goldfish futures are currently selling for $71.07 per contract. Goldfish are currently selling for $51 each (this is an expensive breed of goldfish due to its rarity). Goldfish cost $11 per year to house and feed which is a cost paid in advance each year. The current risk free rate is 4% pa continuously compounded. a) Calculate the theoretical one-year goldfish futures price. Give your answer in dollars and cents to the nearest cent. Futures prices b) Given these conditions, an arbitrager should the goldfish now and one-year goldfish futures contracts 3 of 3 TDI FRM.FU.VF.03 a) Carrying costs involved in pricing physical futures contracts are: costs of storing the physical commodity only opportunity costs of the investment only costs of storing the physical commodity and opportunity costs of the investment b) on the other hand, carrying costs involved in pricing financial Futures contracts are: O costs of storing the financial contract only opportunity costs of the investment only O costs of storing the financial contract and opportunity costs of the investment