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Assume the current 12-month interest rates of Australia and US are 2.1% p.a. and 2.4% p.a. respectively. The exchange rate in the spot market is

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Assume the current 12-month interest rates of Australia and US are 2.1% p.a. and 2.4% p.a. respectively. The exchange rate in the spot market is US$ 0.6579/A$. What's the arbitrage free forward exchange rate (rounded to four decimal place)? Select one: a. US$ 0.6559/A$ b. US$ 0.6560/A$ c. US$ 0.6598/A$ d. US$ 0.6717/A$ e. None of the above

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