Question
8. The following data are taken from the financial market pages of an Australian newspaper. Forward Margins Forward Contract Forward Margins (Buy A$/Sell A$) 1
8. The following data are taken from the financial market pages of an Australian newspaper.
Forward Margins
| Forward Contract | Forward Margins (Buy A$/Sell A$) |
| 1 month | 0/1 |
| 2 months | 1/2 |
| 3 months | 1/3 |
| 6 months | 2/4 |
| 1 year | 0/1 |
| 2 years | -16/-8 |
| 3 years | -51/-11 |
A) What do the forward rates indicate in terms of whether the A$ is expected to strengthen or weaken with respect to the US dollar?
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Financial Analysis And Modeling Using Excel And VBA
Authors: Chandan Sengupta
2nd Edition
047027560X, 978-0470275603
