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Let x be a positive number and suppose that the annual Australian dollar interest rate is x % and the United States dollar annual interest
Let x be a positive number and suppose that the annual Australian dollar interest rate is x and the United States dollar annual interest rate is The spot rate for the United States dollar is $A
a Using interest rate parity, calculate the forward rate premium of the United States dollar with respect to the Australian dollar in terms of x
b Using your answer to a find x if the oneyear forward rate for the United States dollar is A$
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