The correct answer is A (0.7959). The forward rate is calculated using the formula:

$F_{t/d} = S_{t/d} \times \left( \frac{1 + i_d}{1 + i_f} \right)$

Where:

• $S_{t/d}$ is the spot rate (0.8027).
• $i_d$ is the domestic interest rate (USD, 2.42%).
• $i_f$ is the foreign interest rate (AUD, 3.30%).

Substituting the values:

$F_{t/d} = 0.8027 \times \left( \frac{1 + 0.0242}{1 + 0.033} \right) = 0.7959$

Option B (0.8096) is incorrect because it reverses the interest rates in the formula. Option C (0.8292) is incorrect because it uses only the foreign interest rate, ignoring the domestic rate. This question tests the arbitrage relationship between spot and forward exchange rates and interest rates, as well as the calculation and interpretation of forward rates.