1. If the interest in Australian dollar is 3% and the interest rate in U.S. dollar is 1.5% What will be the one-year forward premium or discount for the $USD/AUD exchange rate?
2. The SF/$ spot exchange rate is SF1.25/$ and the 180 day forward premium is 8 percent. What is the 180 day forward exchange rate?
3. Belinda buys a put option on IBM stock for $3. The exercise price is $105. When the option was purchased, the price of IBM was $100, and at the maturity of the option IBM is worth $115. What is Belinda's profit per share?