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The bid-ask for spot USD at 0.7144 to 0.7145 Thank you. 2. The following data are taken from the financial market pages of an Australian
The bid-ask for spot USD at 0.7144 to 0.7145
Thank you.
2. The following data are taken from the financial market pages of an Australian newspaper. Forward Margins Forward Contract Forward Margins (Buy A$/Sell A$) 1 month 0/1 2 month 1/2 3 month 1/3 6 month 2.4 1 year 0/1 -16/-8 -517-11 2 vears 3 years c) You expect to receive US$ 70,000 in 6 months. What amount in A$ will that convert into of you use the above forward rates? (1 marks) d) You need to buy US$ 500,000 in 2 years. How many A$ will you need if you use the forward rates above? (1 marks) e) What do the forward rates indicate in terms of whether the A$ is expected to strengthen or weaken with respect to the US dollar? (2 marks)Step by Step Solution
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