Question: 17.Because it is unlikely she will be able to visit you this year, your wealthy Canadian aunt wants to send you a present for your

17.Because it is unlikely she will be able to visit you this year, your wealthy Canadian aunt wants to send you a present for your birthday. You expect she will give you CAD 1086 in 7 months. Having taken this course, you know you can lock in the AUD rate for this CAD receivable using a money market hedge. If (annualized) 7-month interest rates in the Canada are 6.8%, 7-month interest rates in Australia are 2.5%, and the current spot rate is 2 AUD/CAD, what implied AUD/CAD exchange rate can you lock in? Select the closest answer. a. 2.0494 b. 1.9517 c. 2.0839 d. 0.5124 e. 2225.7

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