Business, 21.05.2021 01:30 jdbell627

Suppose that the spot rate on the Canadian dollar is C$1.40. The risk-free nominal rate in the U. S. is 8 percent while it is only 4 percent in Canada. Which one of the following one-year forward rates best establishes the approximate interest rate parity condition? a. C$1.355.
b. C$1.344.
c. C$1.278.
d. C$1.456.

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Suppose that the spot rate on the Canadian dollar is C$1.40. The risk-free nominal rate in the U. S....

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