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Business, 06.02.2020 01:45 queenkimm26

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

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