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Ozziebank quote 1 year NZD inter-bank interest rate: 4% 1 year AUD inter-bank interest rate: 3% Current spot 0.8500 AUD/NZD 1 year forward rate: 0.8400

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Ozziebank quote 1 year NZD inter-bank interest rate: 4% 1 year AUD inter-bank interest rate: 3% Current spot 0.8500 AUD/NZD 1 year forward rate: 0.8400 AUD/NZD However, you have calculated the implied forward rate to be 0.8420 What actions should you take? Select one: O a. Buy NZD forward, borrow NZD, exchange at spot, invest AUD b. Buy NZD forward, borrow AUD, exchange at spot, invest NZD O c. Buy AUD forward, borrow NZD, exchange at spot, invest AUD O d. Buy AUD forward, borrow AUD, exchange at spot, invest NZD

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