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 19372 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 9.4%-9.2%, and 7-month interest rates in Australia are 5%-4.8%. The current bid-ask spot rates are 1.2305-90 AUD/CAD. What is the locked in AUD value of this present? a. 24459.4569 b. 23230.8632 c. 24883.5373 d. 16154.1300 e. 24432.4042

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