Reading 13 2.2 Forward Markets Ex 2

CFA Level II Economics
#1

I see the formula:

1.0145 * .9674 * -.0346 but I can’t reach the solution given. Can someone please tell me im not crazy and that the solution to Ex 2 does match using the formula given?

Question is: Find the forward premium

Spot (CAD/AUD) = 1.0145

270 Libor (AUD) = 4.87%

270 Libor (CAD) = 1.41%.

The solution given is B -.0254

When I apply the formula I get -.03347 as the forward premium.

#2

F = 1.0145 * (1+0.0141*270/360) / (1 + 0.1487*270/360) = 0.9891

Forward Premium = F-S = (0.9891 - 1.0145) = -0.0254

#3

ohhhh d*** I was adding 1+.04141 then multiplying, thanks for the response.