Question: Suppose you know that the spot rate is currently AU$1 = US$1 and that the 6 month forward rate is AU$1 = US$0.8. What this

Suppose you know that the spot rate is currently AU$1 = US$1 and that the 6 month forward rate is AU$1 = US$0.8. What this means is that

Select one:

a. the market expects the $AU to appreciate over the next 6 months.

b. interest rates are lower in the US than they are in Australia.

c. interest rates are higher in the US than they are in Australia.

d. the market expects the $AU to depreciate over the next 6 months.

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