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

Question

Quizplus · Accepted Answer

The Answer of 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

An Importer Will Be Required to Purchase USD in Approximately