Assume the interest rate in Australia is 10%, and the interest
rate in Europe is 5% and that covered interest parity holds. For
the following exchange rates, find the forward exchange rates
when E$/€=0.9; E$/€=1.2;
and E$/€=1.4 respectively
A. F$/€=0.045; F$/€=0.06;F$/€=0.07
respectively
B.F$/€=0.945; F$/€=1.26;F$/€=1.47
respectively
C. F$/€=1.05; F$/€=1.1025;F$/€=1.365
respectively
D.F$/€=1.11; F$/€=0.83;F$/€=0.714
respectively
E.
F$/€=0.855; F$/€=1.14;F$/€=1.33
respectively
Please show all working out and formula used aswell
Thankyou
Assume the interest rate in Australia is 10%, and the interest rate in Europe is 5% and that covered interest parity hol
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