An investor located in the US has two investment options for her $105,000. One option is the US, where the interest rate is 3.5%. The other option is Australia, where the interest rate is in. The current exchange rate is $1 US buys 1.6 Australian dollars and the future expected exchange rate is $1 US buys 1.62 Australian. If the investor believes the the two future values are the same, what is in? O 3.10% O3.95% O4.79% O 5.25%

An investor located in the US has two investment options for her $105,000. One option is the US, where the interest rate is 3.5%. The other option is Australia, where the interest rate is in. The current exchange rate is $1 US buys 1.6 Australian dollars and the future expected exchange rate is $1 US buys 1.62 Australian. If the investor believes the the two future values are the same, what is in? O 3.10% O3.95% O4.79% O 5.25%

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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