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

Because it is unlikely she will be able to visit you this

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 4813 in 2 months. Having taken this course, you know you can lock in the AUD rate for this USD receivable using a money market hedge. If (annualized) 2-month interest rates in the US are 9.2%, 2-month interest rates in Australia are 2.3%, and the current spot rate is 0.625 USD/AUD, what implied USD/AUD exchange rate can you lock in?

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