A US MNE has decided to enter a 180-day forward arrangement with an Australian supplier when the foreign exchange rate is AU$1.40/$. If interest rate in the United States is 1.5% and 6.48%, what is the forward premium or discount? O 5.48% premium 0 4.20% discount O 4.20% premium O 4.84% discount O 5.48% discount Previous Next > A US MNE has foreign currency denominated operations in Hong Kong dollars with the following strategic forecast assumed to remain constant for the next 5 years: Sales HK$250 million Costs HK$200 million Taxes 25% Exchange Rate HK$7.85/$ If the exchange rate unexpected increases to US$0.12, what is the MNE's operating exposure? (rounded) O $0.25 million $9.62 million $0.28 million O $12.50 million $1.16 million Question 19 2.5 pts A US MNE has decided to enter a 180-day forward arrangement with an Australian supplier when the foreign exchange rate is AU$1.40/$. If interest rate in the United States is 1.5% and 6.48%, what would be the 180-day forward rate if parity conditions hold? (rounded) O AU$0.73/$ $1.40/AUS O $1.43/AU$ O $0.73/AUS O AU$1.43/$ Previous Next Giulia Aurora, a foreign trader at Credit Suisse (Switzerland) is exploring covered interest arbitrage possibilities. He wants to invest $10 million or its Swiss Francs (SF) equivalent, in a covered interest arbitrage between U. S. dollars and Swiss Francs. He faced the following exchange rate and interest rate quotes. What should the 90-day forward rate be to achieve interest rate parity? Assume all else remain unchanged (rounded) Arbitrage funds available $10 million Spot rate (SF/$) 0.99 90-day forward rate (/$) 0.98 90-day U. S. dollar interest rate 4.00% 90-day Swiss Franc interest rate 2.75% O V0.968/US$ O V0.993/US$ OVO.987/US$ O *0.978/US$ O X1.002/US$