This means that: The following are the spot and the swap forward rates of the AUD/USD. 
A) the U.S. dollar is selling at a forward discount
B) the U.S. dollar is selling at a forward premium
C) the Australian dollar is selling at a forward discount
D) after allowing for transaction costs, both currencies sell at par
Correct Answer:
Verified
Q30: In the foreign exchange market, market makers:
A)
Q31: You are given the exchange rate AUD/USD
Q32: If the AUD/USD exchange rate declines from
Q33: 'Reciprocity' in the foreign exchange market refers
Q34: A 'misquote' arises when a dealer:
A) quotes
Q35: Calculate the EUR/AUD cross OFFER rate. You
Q36: Dealer A quotes 1.7652/1.7672 for the AUD/USD
Q37: Calculate the USD/AUD 3-months forward spread in
Q38: Calculate the USD/AUD 3-months forward spread in
Q40: If the AUD/USD forward spread is -5.00%,
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents