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  3. 3. the following data are taken from the financial

3. The following data are taken from the financial market pages of an Australian newspaper....

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Finance

3. The following data are taken from the financial market pages of an Australian newspaper. Forward Margins Forward Contract Buy $A/Sell $A 1 month 4/5 2 month 9/10 3 month 14/16 4 month 19/21 5 month 24/26 6 month 30/31 57/60 The data under the Forward Margins column represent the forward contracts for US dollar with respect to the Australian dollar (given in points form).

(a) Using this data, and the bid-ask for spot USD at 0.6926 to 0.6928, compute the outright bid/ask rates for the following forward contracts: (i) 1 month

(ii) 3 month

(iii) 6 month

(iv) 12 month

v) You expect to receive US$ 10,000 in 3 months. What amount will that convert into?

vi) You need to pay US$ 100,000 in 6 months. How many AUD will you need?

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