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You are given the following information: Spot exchange rate (AUD/USD) 1.7662 Three-month forward rate 1.7810 (AUD/USD) Australian three-month interest 4.85% rate p.a. U.S. three-month interest

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You are given the following information: Spot exchange rate (AUD/USD) 1.7662 Three-month forward rate 1.7810 (AUD/USD) Australian three-month interest 4.85% rate p.a. U.S. three-month interest rate 1.41% p.a. Calculate the precise outward covered margin from an Australian perspective (i.e. short AUD). O A. -2 basis points O B. 2 basis points O C. -259 basis points OD. 257 basis points

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