QUESTION 1 (1+1)_ (1+1) E[S,*/Y_Fly (1 + i)(1+1) Somly Somly New York Co. has payables of 10 million Australian dollars (AUD) in 1 year. New York Co. plans to hedge its exposure with a forward contract that it will arrange today. Assume Interest Rate Parity (IRP) holds. Following information is available. U.S.A 4% One-year nominal rate of interest One-year expected inflation Spot exchange rate Australia 10% 8% 2% USDO.60/AUD 1) Calculate the forward exchange rate in direct quotation (USD?IAUD). 2) Calculate the amount of US dollars that New York Co. will need in 1 year to make its payment