If you have agreed to sell USD for AUD forwardyou have a short position in the USD forward contract.until the exchange rate moves, you have not made money, so you're neither short nor long.you have a long position in the spot market.you have a long position in the USD forward contract.

What would be the forward rate if the Forward Exchange Contract is quoted as AUD/USD0.8040-50 10:14 Question 4Select one:a.AUD/USD0.8026-40b.AUD/USD0.8064-50c.AUD/USD0.8050-64 d.AUD/USD0.8040-26

The current spot exchange rate is AUD 1.00 = USD 0.80. The Australian risk-free rate is 3.0%p.a. compounded continuously, whereas the US risk-free rate is 0.8% p.a. compoundedcontinuously. The no-arbitrage price on a 9-month forward contract written on the exchangerate is likely to bea) USD 0.813 / AUDb) AUD 0.787 / USDc) AUD 1.271 / USDd) AUD 1.230 / USD

Which of the following is TRUE:Group of answer choicesNone of the above.A short position in a forward contract gives you the right and the obligation to buy an asset at a specified price, at a specified time in the future.Only the counterparty, which is short futures, is required to deposit money in a margin account.A long forward contract is equivalent to a long position in a put option and a short position in a call option.Buying an option to sell is the same as selling an option to buy.

Consider an exporter who is to receive a payment of USD10 million three months from now. The current spot exchange rate is AUD/USD0.6895 - 0.6995 and the three months forward rate is AUD/USD0.7095 - 0.7100. In 3 months time the spot rate is 0.7150. If the exporter decides not to hedge its exchange rate risk by taking out a forward cover, what is the AUD amount to be received in six months?Group of answer choicesAUD 14 084 507AUD 14 295 926AUD 14 094 433AUD 13 986 014

A forward currency transaction:Select one:a.Is Always At A Premium Over The Spot Rateb.Means That Delivery And Payment Must Be Made Within One Business Day (Usa/Canada) Or Two Business Days After The Transaction Datec.Calls For Exchange In The Future Of Currencies At An Agreed Rate Of Exchanged.Sets The Future Date When Delivery Of A Currency Must Be Made At An Unknown Spot Exchange Rate