Current spot rate of australian dollar
Course:- Financial Management
Reference No.:- EM131075997

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Assume the following information. You have $900,000 to invest. Current spot rate of Australian dollar (A$) = $0.62. 180-day forward rate of the Australian dollar = $0.64. 180-day interest rate in the United States = 3.5%. 180-day interest rate in Australia = 3.0%. If you conduct CIA, what is the dollar profit you will have realized after 180 days?

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