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The spot rate = 1.269 AUD/US$; the one year forward rate = 1.293 AUD/US$. A US exporter denominates its exports to Australia in AUD and
The spot rate = 1.269 AUD/US$; the one year forward rate = 1.293 AUD/US$. A US exporter denominates its exports to Australia in AUD and expects to receive AUD 100,000 in one year. What will the value of these exports in one year in US$ given that the firm executes a forward hedge? (Ignore transaction costs)
a.US$126,900.00
b.US$78,802.21
c.US$77,339.52
d.US$129,300.00
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