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Business, 05.05.2020 19:31 emily9656

Risk-free rate in the United States 0.04/year Risk-free rate in Australia 0.03/year Spot exchange rate 1.67 A$/$Assume the current market futures price is 1.66 A$/$. You borrow 167,000 A$, convert the proceeds to U. S. dollars, and invest them in the U. S. at the risk-free rate. You simultaneously enter a contract to purchase 170,340 A$ at the current futures price (maturity of 1 year). What would be your profit (loss)?

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