In alternative universe, the Australian government has decided to enter into a target-zone arrangement with the United States. Australian firmCockatoo has a USD 180,000 payable due in 180 days.Assuming the current exchange rate is AUD1.5/USD, the central rate for the AUD/USD is set at 1.55 AUD per USD, and the currencies areallowed to fluctuate with a 11% band on either side, what is the maximum possible amount (in terms of AUD) that Cockatoo could lose due tochanges in the future exchange rate?O a. 141096.77b. 29700.00O c. 39690.00d. 33075.00O e. 30690.00

Given: 180000 Current rate = 1.5 AUD/$ Central rate = 1.55 AUD/$ Fluctuate 11% ether side.

Answered: In alternative universe, the Australian…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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