Question
10. Suppose that the continuous compounding interest rates in Australia and the US are 5% and 5%, respectively, and the spot exchange rate between the
10. Suppose that the continuous compounding interest rates in Australia and the US are 5% and 5%, respectively, and the spot exchange rate between the Australian dollar (AUD) and the US dollar (USD) is 0.6200 USD per AUD. What is the equilibrium exchange rate of one-year AUD forward? 11. From the previous question, suppose that the interest rates in Australia and the US are 8% and 5%, respectively. Given the spot exchange rate of 0.62, what is the equilibrium exchange rate of the one-year AUD forward?
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AQA AS Accounting Unit 2 Financial And Management Accounting
Authors: Brendan Casey
1st Edition
1500684260?, 978-1500684266
