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Bid/Ask on Aussie Dollar Forward. Use the following spot and forward bid-ask rates for the U.S. dollar/Australian dollar (US$ = A$1.00) exchange rate from December 10, 2010, to answer the following questions: a. What is the midrate for each maturity? b. What is the annual forward premium for all maturities? c. Which maturities have the smallest and largest forward premiums? (Click on the icon to import the table into a spreadsheet.) Period Bid Rate Ask Rate
spot 0.98865 0.98892 1 month 0.98476 0.98513 2 months 0.98112 0.98145 3 months 0.97781 0.97822 6 months 0.96632 0.96678 12 months 0.94569 0.94651 24 months 0.90174 0.90303

Q&A Education