Question
1.The current exchange rate between Canadian dollar (CAD) and Australian dollar (AUD) is 0.89CAD/AUD. The CAD interest rate is 2.85% and AUD interest rate is
1.The current exchange rate between Canadian dollar (CAD) and Australian dollar (AUD) is 0.89CAD/AUD. The CAD interest rate is 2.85% and AUD interest rate is 1.50%. Assume these interest rates are continuously compounded. What is the 1.5-yr forward price of AUD?
A.0.9009 CAD
B.0.9074 CAD
C.0.9082 CAD
D.0.9109 CAD
E.0.9112 CAD
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Foundations Of Finance
Authors: Arthur J. Keown, John H. Martin, J. William Petty
10th Edition
0135160618, 978-0135160619
