Foreign Currency	Date	Current Spot Rate in European terms: FX per 1 US dollar	Six -Month Forward Rate in European terms: FX per 1 US dollar
Australia AUD Australian dollar	9/19/18	Spot Price (AUD): 0.7285	AUD Sell Amount: 1.37 Forward Rate: 1.3744

At the current spot rate, how much in the foreign currency are you owed in 6 months?

Assuming you fully hedge your FX exposure in the forward market, how many US dollars will you receive in 6 months?

Is the foreign currency selling in the forward market at a premium, i.e. it appreciates relative to the spot rate, or a discount, i.e., it depreciates relative to the spot rate? Provide numbers to support your answer.