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Posted on Jun 05, 2024

The spot exchange rate between Australia and Singapore is AUD 1.00 = SGD 0.93. Interest rates in Australia and Singapore are 3% and 5% respectively.

What is the fair forward price for a contract expiring in 8 months time?That is, AUD 1.00 = SGD __?

Round your answers to 4 decimal places or you will be incorrect.

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