T10 KCT 7 (Tutorial)

An Australian farmer places an order today, to buy farm equipment from a supplier in China with a 1 month settlement of 1 million CNY (Chinese Yuan).

The current spot rate is: AUD/CNY 4.77/4.88

Which of the following exchange rate movements at settlement provides downside risk for the farmer, given that AUD will be exchanged into CNY?

(select all correct answers only, selecting the wrong answer will result in a mark penalty. selecting all answers will result in 0)