Please do NOT copy and paste the same answer used for this question again! I don't understand the answer that I was given previously and would appreciate it if the steps to solving this question were explained in detail.

1) You see the following quotes for the USD/AUD: Bid Ask USD/AUD Spot Forward 0.8823 0.8693 0.8945 0.8818 AUD Libor USD Libor 2.00% 0.50% 2.10% 0.65% Your company headquartered in the US is expanding sales to Australia, and needs to raise AUD 1,000,000 to finance the opening of a new sales office in Sydney. Your company is not well known in Australia and can borrow from Australian banks at 300 bps over Libor. The company can borrow at 100 bps over Libor in the US. a) How much will it cost the company to borrow directly in Australia? b) Can the company use the futures market to borrow indirectly? If so, how much will it cost