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Business, 23.06.2021 02:20 myaxo

Suppose that the risk-free rates in the United States and in Canada are 5% and 3%, respectively. The spot exchange rate between the dollar and the Canadian dollar (C$) is $0.80/C$. What should the futures price of the C$ for a one-year contract be to prevent arbitrage opportunities, ignoring transactions costs.

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Suppose that the risk-free rates in the United States and in Canada are 5% and 3%, respectively. The...
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