Question: Aussie Dollar Forward. Use the following spot and forward bid-ask rates for the U.S. dollarlAustralian dollar (US$ = A$1.00) exchange rate from December 10, 2010,
Aussie Dollar Forward. Use the following spot and forward bid-ask rates for the U.S. dollarlAustralian dollar (US$ = A$1.00) exchange rate from December 10, 2010, to answer the following questions: a. What is the midrate for each maturity b. What is the annual forward premium for all maturities? c. Which maturities have the smallest and largest forward premiums? (Click on the icon to import the table into a spreadsheet.) Period Bid Rate Ask Rate spot 1 month 2 months 3 months 6 months 12 months 0.98207 0.97882 0.97563 0.97228 0.96155 0.93956 0.98236 0.97919 0.97598 0.97277 0.96209 0.94030 Bid Kate Ask Kate Forward Period Forwarc USSIAS USSIAS Spot 1 month 2 months 3 months 0.98207 0.97882 0.97563 0.98236 30 0.97919 60 0.97228 0.97277| |% Enter any number in the edit fields and then continue to the next question Save for Later
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