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ASAP You are considering making a one-year investment. In the US, interest rates ar 2%, while they are 4% in Australia. The current spot exchange
ASAP
You are considering making a one-year investment. In the US, interest rates ar 2%, while they are 4% in Australia. The current spot exchange rate is \$0.75/A\$. If interest rate parity (IRP) holds, what should be the one-year forward rate F$/AS ? Based on the computed forward rate, the A$ is expected to relative to the US \$. $1.3595/AS; appreciate. \$0.7356/AS; appreciate. $0.7356/AS; depreciate \$1.51/As: depreciate Step by Step Solution
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