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A) What is the forward rate for an Australian Bank Reserve with the current exchange rate of $1.00 USD to 1.39211 USD at 1 year.
A) What is the forward rate for an Australian Bank Reserve with the current exchange rate of $1.00 USD to 1.39211 USD at 1 year. Show work.
B) If an investor invest $10,000 in cash for 1 year at the Bank of Australia with an interest rate of 10% what is the gain or loss after 1 year using the forward exchange rate? Show work.
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