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1.Calculate the six-month forward exchange rate between Great Britain Pound (GBP) and Australian dollar (AUD) if the spot exchange rate for GBP is 1.645 AUD,

1.Calculate the six-month forward exchange rate between Great Britain Pound (GBP) and Australian dollar (AUD) if the spot exchange rate for GBP is 1.645 AUD, the Australian risk-free rate is 2.50% and UK risk-free rate is 2%. Assume that the interest rates are continuously compounded.

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