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Question - On 12 August, a Commonwealth Bank dealer in Melbourne concluded a transaction with a Citibank dealer in New York. The former agreed to buy from the latter USD8 000 000 at an exchange rate (AUD/USD) of 1.83 for delivery on 14 August. On the delivery date, the exchange rate decreased to 1.77.
i. How much would the Commonwealth Bank be required to pay to settle the transaction?
ii. Which currency has appreciated and which one has depreciated on 14 August?
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