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Suppose that the two-year interest rates in Australia and the United States are 5% and 7%, respectively. The spot exchange rate is 0.62 USD (US
Suppose that the two-year interest rates in Australia and the United States are 5% and 7%, respectively. The spot exchange rate is 0.62 USD (US dollars) per AUD (Australian dollars).
- What is the theoretical two-year forward rate?
- Suppose that the two-year forward exchange rate quoted by Trader A is 0.68 USD per AUD, is this forward rate too low or too high? Explain your answer.
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Bitcoin Cash What You Need To Know About Bch
Authors: Alexander O. M.
1st Edition
1976721229, 978-1976721229
