Question
Assume that the 1-year interest rate in Australia is 6% and the 1-year interest rate in Singapore is 9%. The spot rate of the Singapore
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Assume that the 1-year interest rate in Australia is 6% and the 1-year interest rate in Singapore is 9%. The spot rate of the Singapore dollar is A$0.80. Alice purchases a 1-year forward contract on 1 million Singapore dollars. Assuming that the interest rate parity (IRP) holds, how many Australian dollars will Alice need in 1-year to fulfil the forward contract?
A. A$778,000
B. A$822,641
C. A$822,000
D. A$222,000
E. None of the above
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Meta Verse Complete Beginners Guide To Digital Asset
Authors: Koala Publishers ,Charles Murphy
1st Edition
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