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7. The current RM/USD spot rate is RM3.05/USD. The 3-month forward rate is quoted SD. The 3-month forward rate is quoted as RM3.00/USD. The 1-year

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7. The current RM/USD spot rate is RM3.05/USD. The 3-month forward rate is quoted SD. The 3-month forward rate is quoted as RM3.00/USD. The 1-year forward rate is quoted as RM3.06/USD What do we learn from these ques: ! A) The 3-month interest rate in Malaysia is higher than in the US, but the 1-year interest rate Malaysia is lower than in the US B) The 3-month interest rate in Malaysia is lower than in the US, but the 1-year interest race Malaysia is higher than in the US C) There are arbitrage opportunities in the market, because the 3-month forward rate is above me year forward rate D) There appears to be a lot of selling pressure on the Ringgit one year from now ft What is the break-even

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