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An Australian company imports has a USD100mil payable due in one year (at time 1). The current exchange rate (At time 0)
Posted: Sun Jul 03, 2022 6:49 am
by answerhappygod
- An Australian Company Imports Has A Usd100mil Payable Due In One Year At Time 1 The Current Exchange Rate At Time 0 1 (16.28 KiB) Viewed 13 times
An Australian
company imports has a USD100mil payable due in one year (at time 1). The current exchange rate (At time 0) is USD0.85/AUD. The inflation rate in Australia is 4.5%, the inflation rate in the US is 6%. In one year (at time 1), the market exchange rate is USD 0.90/AUD. What is the real USD/AUD exchange rate as at time 1? Express your answer to four decimal places. Answer: