An Australian company has payables of USD100,000, due in three months. The current AUD/USD exchange rate is 1.7900/1.8000, the three-month Australian interest rate is 3.4/3.5%pa and the three-month U.S. interest rate is 2.5/2.6%pa. Calculate the implicit forward rate achieved via a money market hedge.
A) 1.8176
B) 1.7826
C) 1.8450
D) 1.8045

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The Answer of An Australian company has payables of USD100,000, due in three months. The current AUD/USD exchange rate is 1.7900/1.8000, the three-month Australian interest rate is 3.4/3.5%pa and the three-month U.S. interest rate is 2.5/2.6%pa. Calculate the implicit forward rate achieved via a money market hedge.
A) 1.8176
B) 1.7826
C) 1.8450
D) 1.8045

An Australian Company Has Payables of USD100,000, Due in Three