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An Importer Will Be Required to Purchase USD in Approximately

Question 108

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An importer will be required to purchase USD in approximately six months to pay for a consignment of goods.The company is concerned that the AUD may depreciate before the due date and therefore decides to enter into a forward exchange contract to protect its position.The company receives the following quote: 'the Aussie is fifty-eight forty-five to fifty-three,sixty-two to sixty six'.Calculate the forward exchange rate.


A) AUD/USD 0.5783-87
B) AUD/USD 0.5907-19
C) AUD/USD 0.5911-15
D) AUD/USD 0.6465-13

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