Answered step by step
Verified Expert Solution
Question
1 Approved Answer
What would be 2-months forward quote on AUD/USD if the spot rate is USD/AUD 1.4134-38. Base currency (USD) bid and offer interest rates per annum
What would be 2-months forward quote on AUD/USD if the spot rate is USD/AUD 1.4134-38. Base currency (USD) bid and offer interest rates per annum are 2% and 2.2% per annum, whereas terms currency interest rates are 2.5% and 2.8% per annum.
The answer says 0.7064-72, but I don't get that. Is someone able to explain please?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started