Question: Currently, the spot exchange rate is $ 0 . 7 1 per A$ and the one - year forward exchange rate is $ 0 .

Currently, the spot exchange rate is $0.71 per A$ and the one-year forward exchange rate is $0.67 per A$. One-year interest is 3.5% in the United States and 4.2% in Australia. You may borrow up to $1,000,000 or A$1,408,451, which is equivalent to $1,000,000 at the current spot rate.

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