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Question 4 AUD/USD An Australian agricultural company is exporting goods to Malaysia. To ascertain the firm's competitiveness in the foreign market, it needs to calculate

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Question 4 AUD/USD An Australian agricultural company is exporting goods to Malaysia. To ascertain the firm's competitiveness in the foreign market, it needs to calculate the MYR/AUD cross-rate. A FX dealer quotes the following rates: AUD/USD 0.7771-79 USD/MYR 4.1000-50 a) Explain from the perspective of the dealer, what the USD/MYR quote indicates. What is the dealer's margin? b) Transpose the quotation in part (a) c) Calculate the AUD/MYR cross rate. Explain what the quote indicates from the dealer's perspective, and which quote would apply to the Australian agricultural company

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