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Question 18 (5 points) Current Spot rate A$ 0.62/Euro 360 day forward rate AS 0.65/Euro 360 day Australian interest rate: 2.5% 360 day German interest

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Question 18 (5 points) Current Spot rate A$ 0.62/Euro 360 day forward rate AS 0.65/Euro 360 day Australian interest rate: 2.5% 360 day German interest rate: 1.5% According to the German and Australian rates, the implied 360 day forward rate is (spot rate times 1 plus the interest rate differential): O A$ 0.69/Euro A$ 0.65/Euro O A$ 0.63/Euro A$ 0.61/Euro O A$ 0.67/Euro

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