6 7. nodw ob 15be bluod dW 0 An exchange rate is 0.7000 and the six-month domestic and foreign risk-free interest rates are 5% and 7% (both expressed with continuous compounding). What is the six-month forward rate? node A. 0.7070 . 0.7177 C. 0.7249 D. 0.6930 bloods 8. Which of the following best describes the capital asset pricing model? A. Determines the amount of capital that is needed in particular situations B. Is used to determine the price of futures contracts C.Relates the return on an asset to the return on a stock index D. Is used to determine the volatility of a stock index 9. An exchange rate is 0.7000 and the six-month domestic and foreign risk-free interest rates are 5% and 7% (both expressed with continuous compounding). What is the six-month forward rate? A. 0.7070 0.7177 . 0.7249 . D. 0.6930 SO12 #