The spot exchange rate between Australia and New Zealand is AUD 1.00 = NZD 1.29....
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The spot exchange rate between Australia and New Zealand is AUD 1.00 = NZD 1.29. Interest rates in Australia and New Zealand are 4% and 7% per annum respectively.
Calculate the fair forward price for delivery of one NZD in 8 months time.
Your answer will be expressed in terms of AUD. Give an answer to 4 decimal places.
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