Continue with the data from the question above.Using the formula for Interest rate parity,

F₁=S₀(1+R_{Quote Currency})/(1+R_{Base Currency}),

what one-year Forward Rate should prevail in the market?

Select one:

a. AUD/CAD = 0.9321

b. AUD/CAD = 0.9280

c. AUD/CAD = 0.9245

d. AUD/CAD = 0.9200

e. AUD/CAD = 0.9176

(I know the answer is 0.9321, I just want someone to show me the calculation, Thanks).