1. Australian Grain Export has supplied Barley to China and will receive 3 million Chinese yuan (CNY) in one year. Also, Australian Grain Export has the following market information and believes that the Purchasing Power Parity (PPP) does hold. How much Australian dollar Australian Grain Export will make a profit or loss in percentage (%) due to change in todays spot rate after one year according to PPP? (enter 2 decimal places number with no sign or symbol)The correct answer is: 4.38

Australian dollar Chinese yuan Spot rate (A$) (CNY) Real interest rate p.a. 4.23% 4.23% Nominal interest rate 7.63% 12.37% p.a. A$0.1956/CNY Today's spot rate