Suppose you would like to deposit HKD5000 into this currency linked deposit account for a month (30/365). You choose the conversion rate to be 5.4218 HKD per AUD. If the actual exchange rate 1 month later (HKD/AUD) is higher than the conversion rate, you will be able to get back your principal and interest in HKD. If the actual exchange rate 1 month later is below the conversion rate, you will get back your principal and interest in AUD, i.e. your deposit will be converted into AUD at the conversion rate.

1.If 1-month later, the spot exchange rate is 5.5, how much in HKD will you be able to get back? (leave answer in 2 d.p.)

2.If 1-month later, the spot exchange rate is 5.4, how much in AUD will you be able to get back? (leaves answer in 2 d.p.)

3.If 1-month later, the spot exchange rate is 5.4, how much in HKD will you be able to get back? (leaves answer in 2 d.p.)

4.Supposed that currently, the 1-month interest rate in HKD is 2% p.a., if you would like to deposit HKD to yield a payoff 5.equal to your answer in question 3, how much do you need to deposit?

What is the composition of the investment?

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x Place order Deposit currency HKD Linked currency AUD Choose your order Select from rate table Interest rate (p.a. basis) 8.50% Deposit Plus rates 9.00% 9.50% 10.00% 1 Week 2 Weeks 3 Weeks 1 Month 2 Months 3 Months 10.50% 11.00% 11.50% Deposit amount HKD 5,000 Spot reference 1 AUD = 5.4387 HKD Personalize your deposit period, interest rate or conversion rate Deposit period Conversion rate 5.4122 5.4218 5.4309 5.4397 5.4481 5.4562 5.4640 Spread -0.0265 -0.0169 -0.0078 0.0010 0.0094 0.0175 0.0253 x Place order Deposit currency HKD Linked currency AUD Choose your order Select from rate table Interest rate (p.a. basis) 8.50% Deposit Plus rates 9.00% 9.50% 10.00% 1 Week 2 Weeks 3 Weeks 1 Month 2 Months 3 Months 10.50% 11.00% 11.50% Deposit amount HKD 5,000 Spot reference 1 AUD = 5.4387 HKD Personalize your deposit period, interest rate or conversion rate Deposit period Conversion rate 5.4122 5.4218 5.4309 5.4397 5.4481 5.4562 5.4640 Spread -0.0265 -0.0169 -0.0078 0.0010 0.0094 0.0175 0.0253

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