Question: NEED HELP WITH THSI QUESTION!! WITH EXPLANATIONS The current exchange rate between Canadian dollar (CAD) and Australian dollar (AUD) is 0.89CAD/AUD. The CAD interest rate

NEED HELP WITH THSI QUESTION!! WITH EXPLANATIONS The current exchange rate betweenNEED HELP WITH THSI QUESTION!! WITH EXPLANATIONS

The current exchange rate between Canadian dollar (CAD) and Australian dollar (AUD) is 0.89CAD/AUD. The CAD interest rate is 2.85% and AUD interest rate is 1.50%. Assume these interest rates are continuously compounded. What is the 1.5-yr forward price of AUD? A. 0.9009 CAD B. 0.9074 CAD C. 0.9082 CAD D. 0.9109 CAD E. 0.9112 CAD

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