The risk of such trade is that the australian dollar may


In 2010 many investors borrowed money in countries such as the US, where interest rates were low, and invested the money in countries such as Australia where the rates were high. This is called a carry trade. The risk of such trade is that the Australian dollar may depreciate sharply. Could you eliminate this risk by entering into a forward exchange contract and still make money?

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Finance Basics: The risk of such trade is that the australian dollar may
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