immy Oz wheat farmer is exporting wheat and has just contracted to sell a consignment at CNY 1,500,000 to be settled in 3 months. The current CNY/AUD spot is 0.25 The bank offers Jimmy a choice of hedging the sale with a forward contract at CNY/AUD 0.2340 Economists forecast that over the next 3 months, the RBA will continue to increase interest rates to 4% while the Peoples Bank of China (Chinas central bank) will leave their rates unchanged at 1.5%

The difference between bank forward rate and the implied rate by CIP is _______

and the difference in AUD received from exchanging the CNY1.5 million is______

Does the bank forward rate seem competitive?________ (No difference, Yes, or No) .