g Suppose 1 U. S. dollar equals 1.25 Australian dollars in the spot market and that 6-month Australian securities have an annualized return of 2% risk-free (and thus a 6-month periodic risk-free return of 1%). Further suppose that 6-month U. S. securities have an annualized return of 1% risk-free (and thus a 6-month periodic risk-free return of 0.5%). If interest rate parity holds, what is the U. S. dollar-Australian dollar exchange rate in the 180- day forward market (express your answer as a direct quote to four decimal places)