Question: 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

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 12973 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. (Annualized) 7-month interest rates in Canada are 9%-8.8%, and 7-month interest rates in Australia are 4.2%-4%. The current bid-ask spot rates are 1.2308-90 AUD/CAD. What is the locked in AUD value of this present? O a. 16422.2587 O b. 15524.6895 O c. 16734.8207 O d. 10840.7147 O e. 16404.0551

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