Thank you for answering the question. Can you explain part a) the reason for using forward rate for Australian currency, CNY1.9288/A$? Why not use the forward rate of A$0.5492/CNY for Chinese yuan (CNY)?

qa_attachm...228031315.jpg 3 comments This question has 1 answer Tutor answered the question Be the first to rate this answer a) Amount receivable = CYN 5.83M One year Forward rate = AUD 0.5492 A$ proceeds from the forward hedging strategy = 5,830,000/1.9288 = A$ 3,022,604.73