Question
The spot exchange rate between Australia and New Zealand is AUD 1.000 = NZD 1.34. Interest rates in Australia and New Zealand are 4% and
The spot exchange rate between Australia and New Zealand is AUD 1.000 = NZD 1.34. Interest rates in Australia and New Zealand are 4% and 7% per annum respectively.
Calculate the fair forward price for delivery of AUD in 9 months time.
Your answer will be expressed in terms of NZD. Give an answer to 4 decimal places.
Answer:
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Business Mathematics
Authors: Gary Clendenen, Stanley A Salzman, Charles D Miller
12th Edition
0135109787, 9780135109786
