Consider the Following What Should Be the Proper Futures Price for a 1-Year

question 44

Multiple Choice

Consider the following: $\begin{array}{lc} &\text { CE Now } \\ \text { Risk-free rate in the United States } & \text { 0.04 / year } \\ \text { Risk-free rate in Australia } & \text { 0.03 / year} \\ \text { Spot exchange rate } &1.67A\$/\$\\\end{array}$
What should be the proper futures price for a 1-year contract?

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