Question: The two-year futures price of Australian dollars (AUD) is $0.6533/AUD, while the AUD spot price is $0.7111. If U.S. risk- free rate is 2.1%,

The two-year futures price of Australian dollars (AUD) is $0.6533/AUD, while the

The two-year futures price of Australian dollars (AUD) is $0.6533/AUD, while the AUD spot price is $0.7111. If U.S. risk- free rate is 2.1%, what is the implied risk-free rate in Australia? Between 2% and 5% Between 5% and 7% Between 7% and 10% None of the above

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