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$/$

---

Definitions:

IQ Scores

Quantitative measures of a person's intelligence relative to others, based on standardized tests.

Predicting Behavior

The process of forecasting future actions based on past and present observations or data.

Control

The ability to shape or control the actions of individuals or the direction of events.

Science Of Behavior

The systematic study and analysis of how individuals behave and interact, encompassing a wide range of psychological and sociological aspects.