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What is the forward price of aud

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Reference no: EM132386407

The current exchange rate between Canadian dollar (CAD) and Australian dollar (AUD) is 0.89CAD/AUD. The CAD interest rate is 2.85% and AUD interest rate is 1.50%. Assume these interest rates are continuously compounded. What is the 1.5-yr forward price of AUD?

A. 0.9009 CAD

B. 0.9074 CAD

C. 0.9082 CAD

D. 0.9109 CAD

E. 0.9112 CAD

Reference no: EM132386407

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