Calculate the 90-Day Forward Rate Given the Spot Rate Is

question 70

Essay

Calculate the 90-day forward rate given the spot rate is AUD/GBP 0.5555 and interest rates are 1% in the UK and 3% in Australia (use 365-day-year for both countries).What are the forward points?

---

Definitions:

Sherifs

Refers to Muzafer Sherif, a social psychologist known for his work on social norms and the Robbers Cave Experiment on intergroup conflict and cooperation.

Appeasement

A conflict resolution strategy where one party attempts to pacify another by conceding to their demands, often to avoid conflict.

Competition

A situation in which individuals or entities strive against each other to achieve a goal that cannot be shared.

Cooperative Reactions

Actions undertaken by individuals or groups that are designed to work together in a mutually beneficial manner.