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Suppose R AUD = 6.5%, R HKD = 6.3%, E AUD/HKD = 5.5, FAUD/HKDt=3 months =...

Suppose R AUD = 6.5%, R HKD = 6.3%, E AUD/HKD = 5.5, FAUD/HKDt=3 months = 5.7. Assume all rates are quoted on 12 months. Determine whether Covered Interest Parity holds, and if not, what course of action is available to an investor.

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