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The following are the spot and the swap forward rates of the AUD/USD. Spot 1.7652/1.7672 One-month 10/20 This means that: after allowing for transaction costs,

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The following are the spot and the swap forward rates of the AUD/USD. Spot 1.7652/1.7672 One-month 10/20 This means that: after allowing for transaction costs, both currencies sell at par the Australian dollar is selling at a forward premium o the U.S. dollar is selling at a forward premium o the U.S. dollar is selling at a forward discount

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