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You are given the following information: Spot exchange rate (AUD/USD) 1.7624--1.7864 Six-month expected spot rate (AUD/USD) 1.4880--1.5120 Australian six-month interest rate 4.55%--5.05% p.a. US six-month
You are given the following information: Spot exchange rate (AUD/USD) 1.7624--1.7864 Six-month expected spot rate (AUD/USD) 1.4880--1.5120 Australian six-month interest rate 4.55%--5.05% p.a. US six-month interest rate 1.18%--1.68% p.a. Calculate the precise inward uncovered margin from an Australian perspective (i.e. (short USD). O A. 298 basis points. OB. 152 basis points. O C. 1,879 basis points. OD. 68 basis points
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