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

Because it is unlikely she will be able to visit you this year, your wealthy American aunt wants to send you a present for your birthday. You expect she will give you USD 15933 in 6 months. Having taken this course, you know you can lock in the AUD rate for this USD receivable using a money market hedge. (Annualized) 6-month interest rates in the US are 6.7%-6.5%, and 6-month interest rates in Australia are 1.7%-1.5%. The current bid-ask spot rates are 1.2375-90 AUD/USD. What is the locked in AUD value of this present? a. 20206.3453 b. 20727.2240 c. 19221.0601 d. 13207.4135 e. 20225.9156

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