Question
Currently, the spot exchange rate is $0.81/A$ and the one-year forward exchange rate is $0.77/A$. One-year interest is 3.5% in the United States and 4.2%
Currently, the spot exchange rate is $0.81/A$ and the one-year forward exchange rate is $0.77/A$. One-year interest is 3.5% in the United States and 4.2% in Australia. You may borrow up to $1,000,000 or A$1,234,568, which is equivalent to $1,000,000 at the current spot rate.
Determine if IRP is holding between Australia and the United States.
multiple choice
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Yes
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No
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The Laymans Guide To Managing Your Investments
Authors: Thomas Dunleavy
1st Edition
979-8763592214
