Consider the following: $\begin{array}{lc}

&\text { CE Now } \
\text { Risk-free rate in the United States } & \text { 0.04 / year } \
\text { Risk-free rate in Australia } & \text { 0.03 / year} \
\text { Spot exchange rate } &1.67A\$/\$\
\end{array}$
What should be the proper futures price for a 1-year contract?
A) 1.703 A$/$
B) 1.654 A$/$
C) 1.638 A$/$
D) 1.778 A$/$
E) 1.686 A$/$

Question

Consider the following: $\begin{array}{lc}
 
 &\text { CE Now } \ 
  \text { Risk-free rate in the United States } & \text {  0.04 / year } \
 \text { Risk-free rate in Australia } & \text {   0.03 /  year} \
  \text { Spot exchange rate } &1.67A\$/\$\
\end{array}$
 What should be the proper futures price for a 1-year contract?
A) 1.703 A$/$
B) 1.654 A$/$
C) 1.638 A$/$
D) 1.778 A$/$
E) 1.686 A$/$

Quizplus · Accepted Answer

The Answer of Consider the following: $\begin{array}{lc}
 
 &\text { CE Now } \ 
  \text { Risk-free rate in the United States } & \text {  0.04 / year } \
 \text { Risk-free rate in Australia } & \text {   0.03 /  year} \
  \text { Spot exchange rate } &1.67A\$/\$\
\end{array}$
 What should be the proper futures price for a 1-year contract?
A) 1.703 A$/$
B) 1.654 A$/$
C) 1.638 A$/$
D) 1.778 A$/$
E) 1.686 A$/$

Consider the Following What Should Be the Proper Futures Price for a 1-Year