The Allan Key

Can Applied Financial Diagnostics assist you? You may have been, or can imagine yourself, in the following scenario:

You are about to sign a $100 million contract.

You are offered:
A$ 100 million in one year's time
OR
US$ 100 million in one year's time.

Assume for simplicity that  today's exchange rate is A$1 = US$1 (that is, the exchange rate is at parity).

Which one would you choose? (You might like to ask yourself why.)

You can designate either A$ or US$.
AUD one million dollar noteUSD one million dollar note

Choose A$ 100 million           Choose US$ 100 million