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Part C Assume that you trade forward contracts involving the United States dollar (USD) against the Australian dollar (AUD) in Australia. The forward margins on

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Part C Assume that you trade forward contracts involving the United States dollar (USD) against the Australian dollar (AUD) in Australia. The forward margins on the AUD are available in the table below. What are the forward premiums or discounts on the USD? Explain and show your working clearly and completely. Give your final answers in annual percentage terms. Length of forward contract 30-day contract 90-day contract 120-day contract 180-day contract Forward margin on AUD per annum -18% -5% 9% 12%

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