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

question 22

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Consider the following:  CF Now  Risk-free rate in the United States 0.04/ Cear  Risk-free rate in Australia 0.03/ year  Spot exchange rate 1.67 A$/$\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?


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