Consider that interest rate parity exists you expect that, Ask an Expert

Finance

Consider that interest rate parity exists. You expect that the 1-year nominal interest rate in the United States is 7 percent, while the 1-year nominal interest rate in Australia is 11 percent. The spot rate of the Australian dollar is $0.60. You will need 10 million Australian dollars in 1 year. Today, you purchase a 1-year forward contract in Australian dollars. How many U.S dollars will you need in 1 year to fulfill your forward contract?

View complete question

Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M9733469

Have any Question?Write your Review or question?

Related Questions in Basic Finance

Assignment - alternative valuation methodsyou may do this

Assignment - Alternative Valuation Methods You may do this assignment individually or with one other person. In this assignment, you use horizon value calculation methods to estimate the current market value of a private ...

What is the cost of debt financing for a perpetual bond

What is the cost of debt financing for a perpetual bond selling for $948 if the semiannual coupon is $35, if the investment bank charges $5.40 per bond? (assume the firm is in a 40% tax bracket)

What are the main reasons for dji competitiveness in the

What are the main reasons for DJI competitiveness in the Drone Market? What are the main differences in the customers needs and values in the customer retail and Commercial professional drone market?

Yu are given the following quotesus dollarbrazilian real

You are given the following quotes: U.S. dollar/Brazilian Real = 0.3459 U.S. dollar/Australian Dollar = 0.7567 U.S dollar/Chinese Yuan = 0.1962 What is the Brazilian Real/Australian Dollar cross rate? Enter your answer r ...

You are considering investing in a bank account that pays a

You are considering investing in a bank account that pays a nominal annual rate of 7%, compounded monthly. If you invest $3,000 at the end of each month, how many months will it take for your account to grow to $200,000?

Question - a person wishes to buy a 150000 apartment the

Question - A person wishes to buy a $ 150,000 apartment. The down payment is 20 percent and the balance is to be financed at 9 percent p.a. over the next 30 years. What would be the monthly mortgage payment?

A brewer is launching a new product brewed ginger ale with

A brewer is launching a new product: brewed ginger ale with a low alcohol content. The brewer plans to spend $3 million promoting this product this year, which is expected to expand its sales of this product to $12 milli ...

Assignment - based on walgreens boots alliance wba

Assignment - Based on Walgreens Boots Alliance (WBA) Pharmacy: This paper will utilize the calculations for the pro forma financial model and identify the necessary financial artifacts needed to formulate an informed mod ...

1 what is the value today of single payment of 2875 made 19

1) What is the value today, of single payment of $2,875 made 19 years from today, if the value is discounted at a rate of 20.00%? 2) How many years would it take an investment of $859 to grow to $12,339 at an annual rate ...

How does the bid-ask spread affect market orders vs limit

How does the bid-ask spread affect market orders vs limit orders? (Does it related to a narrow/wide spread?)

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Basic Finance Expert