Question 22 (1 point) You are the Financial Manager of Walmart in U.S. and Walmart has recently started exporting food products to an Australian company, Woolworths. The exports are currently invoiced in Australian dollars (AUD). Suppose further that Walmart shipped an order to Woolworths invoiced at AUD100 million at the end of 2018. Walmart expects payment in a year's time. Suppose that the spot exchange rate at the end of 2018 was AUD1.3036/USD and that the mean and standard deviation of the AUD/USD historical percentage changes are u=0.28% and o=9.95%, respectively. What are the conditional mean and conditional volatility of the future spot AUD/USD exchange rate in a year's time? Conditional mean AUDO.004/USD, and conditional volatility AUDO.78/USD Conditional mean AUDO.365/USD, and conditional volatility AUDO.14/USD Conditional mean AUD1.3073/USD, and conditional volatility AUD13/USD Conditional mean AUD1.3073/USD, and conditional volatility AUDO.13/USD Previous Page Next Page Page 22 of 25 Question 22 (1 point) You are the Financial Manager of Walmart in U.S. and Walmart has recently started exporting food products to an Australian company, Woolworths. The exports are currently invoiced in Australian dollars (AUD). Suppose further that Walmart shipped an order to Woolworths invoiced at AUD100 million at the end of 2018. Walmart expects payment in a year's time. Suppose that the spot exchange rate at the end of 2018 was AUD1.3036/USD and that the mean and standard deviation of the AUD/USD historical percentage changes are u=0.28% and o=9.95%, respectively. What are the conditional mean and conditional volatility of the future spot AUD/USD exchange rate in a year's time? Conditional mean AUDO.004/USD, and conditional volatility AUDO.78/USD Conditional mean AUDO.365/USD, and conditional volatility AUDO.14/USD Conditional mean AUD1.3073/USD, and conditional volatility AUD13/USD Conditional mean AUD1.3073/USD, and conditional volatility AUDO.13/USD Previous Page Next Page Page 22 of 25