.

Using the following spot and forward bid-ask rates for the US Dollar/ Australian Dollar (USD /AUD) exchange rate, answer the following questions: *

a. 0.9472; 0.9442

b. 0.6061; 0.6066

c. 0.97745; 0.97786

d. 0.9847; 0.9813

e. None of the above

15. Referring to question 14, the 3-months forward points for ask and bid respectively are equal to: *

a. -111.30; - 109.90

b. 111.30; 109.90

c. -70; -80

d. 85; 79

e. None of the above

16. Referring to question 14, the annual forward premium/discount for 1-month forward is equal to: *

a. 4.6094%

b. -4.6094%

c. 4.5917%

d. -4.5917%

e. None of the above

17. Refer to question 14. _________ has the largest forward discount while ________ has the smallest forward discount. *

a. 2 months forward; 3 months forward

b. 1 month forward; 3 months forward

c. 3 months forward; 1 month forward

d. 2 months forward; 1 months forward

e. None of the above.

Points Period Spot 1-month forward 2-months forward 3-months forward Spot and forward USD/ AUD Bid Ask Rate Points 0.98510 ? -37.5 ? -75.4 0.97397 ? -37.9 -76.5 ? Rate 0.9854 ? ? 0.97441 What are the outright 2-months forward rates for bid and ask respectively