Question: Please show calculation and explain why it is a premium or discount. The current U.S. dollar-Australian dollar spot rate is $0.8988/A$. If the 90-day forward

Please show calculation and explain why it is a premium or discount.

The current U.S. dollar-Australian dollar spot rate is $0.8988/A$. If the 90-day forward exchange rate is $1.0583/A$ then the Australian dollar is selling at a per annum ________ of ________.

Premium or Discount of _________?

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