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Assume you are a corporate customer - therefore, a price taker. You need to buy AUD versus USD outright for delivery in 3 months. ANZ

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Assume you are a corporate customer - therefore, a price taker. You need to buy AUD versus USD outright for delivery in 3 months. ANZ and Westpac's spot prices are 0.7515/19 and 0.7518/23 respectively. Their 3 month FX swap prices are 37/36 and 38/37, respectively. By combining the prices from both banks, the best possible available 3 month hedge rate is: Select one: a. 0.7482 b. 0.7487 C. 0.7480 d. 0.7486 e. 0.7483 The correct answer is: 0.7482

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