|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
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$.
Choose A$ 100 million Choose US$ 100 million