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

question 22

Multiple Choice

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

• A) 1.703 A$/$
• B) 1.654 A$/$
• C) 1.638 A$/$
• D) 1.778 A$/$
• E) 1.686 A$/$

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Definitions:

Value-Free Sociology

Value-Free Sociology is a principle advocating for the objectivity of sociologists, arguing that they should study society and social behaviors without allowing their personal biases, beliefs, or values to influence their research.

Objectivity

The practice of maintaining impartiality and neutrality, avoiding bias and subjective influences in research, reporting, and analysis.

Bias

Prejudice in favor of or against one thing, person, or group compared with another, often in a way considered to be unfair.

Inductive Reasoning

A logical process in which multiple premises, all believed true or found true most of the time, are combined to obtain a specific conclusion.