Question
Three-month interest rates are 4.5% p.a. (c.c.) in the US and 6.75% p.a. (c.c.) in Australia. If the three-month forward rate on the Australian dollar
Three-month interest rates are 4.5% p.a. (c.c.) in the US and 6.75% p.a. (c.c.) in Australia. If the three-month forward rate on the Australian dollar is AUD1 = USD0.6835, then the current spot rate of the Australian dollar must be:
USD0.6797
USD0.6891
USD0.6683
USD0.6874
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Financial Management For Decision Makers
Authors: Peter Atrill
9th Edition
1292311436, 978-1292311432
