Question: Using the following exchange rates between US$ and Australian $, calculate annual forward premium/discount. Period Exchange Rate ($/) Spot 1.2200 3 month 1.2211 5 months

Using the following exchange rates between US$ and Australian $, calculate annual forward premium/discount.

Period

Exchange Rate ($/)

Spot

1.2200

3 month

1.2211

5 months

1.2225

9 months

1.2260

The 9-month forward premium/discount is

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