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Forward premiums on the australian dollar use the following

Question: Forward Premiums on the Australian Dollar. Use the following spot and forward bid-ask rates for the U.S. dollar/Australian dollar (US$/A$) exchange rate from December 10, 2010, to answer the following questions:

a. What is the mid-rate for each maturity?

b. What is the annual forward premium for all maturities?

c. Which maturities have the smallest and largest forward premiums?

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Management Theories: Forward premiums on the australian dollar use the following

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