ssume that interest rate parity exists. You expect that the one-year nominal interest rate in the U. S. is 7%, while the one-year nominal interest rate in Australia is 11%. The spot rate of the Australian dollar is $.60. You will need 10 million Australian dollars in one year. Today, you purchase a one-year forward contract in Australian dollars. How many U. S. dollars will you need in one year to fulfill your forward contract? A. $5,784,000 B. $5,387,000 C. $6,184,000 D. $8,356,000
+1
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “ssume that interest rate parity exists. You expect that the one-year nominal interest rate in the U. S. is 7%, while the one-year nominal ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Home » Business » ssume that interest rate parity exists. You expect that the one-year nominal interest rate in the U. S. is 7%, while the one-year nominal interest rate in Australia is 11%. The spot rate of the Australian dollar is $.60.