Three-month interest rates are 4.5% p.a. (c.c.) in the US and 6.75% p.a. (c.c.) in Australia. If

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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

Related Book For answer-question

Fundamentals of Multinational Finance

ISBN: 978-0205989751

5th edition

Authors: Michael H. Moffett, Arthur I. Stonehill, David K. Eiteman

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Posted Date: Sep 01, 2022 07:50 AM

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Three-month interest rates are 4.5% p.a. (c.c.) in the US and 6.75% p.a. (c.c.) in Australia. If

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Fundamentals of Multinational Finance

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