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Assume an FI Sells A$100 Million for US$ on the Spot

question 32

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Assume an FI sells A$100 million for US$ on the spot currency markets at an exchange rate of A$1.20 to $US1.00.What is the US$ value of the investment (round to two decimals) ?

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Definitions:

Deduction

A logical process in which a conclusion follows necessarily from the premises presented, moving from general principles to specific instances.

Abduction

Reasoning from an observed effect to possible causes.

Hypothesis

A tentative explanation or prediction that can be tested through research and experimentation.

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