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A Canadian supplier is offering two options to his American client to pay for an equipment: paying 13,000 Canadian dollars now or paying 10,000 US
A Canadian supplier is offering two options to his American client to pay for an equipment: paying 13,000 Canadian dollars now or paying 10,000 US dollars in 6 months. If the annual interest rate for the Canadian dollar is 5% and for the US dollar is 8%, what is the "implied" exchange rate?
Question 5 options:
| CAD0.7581/USD. | |
| CAD1.3520/USD. | |
| CAD0.7505/USD. | |
| CAD1.3190/USD. | |
| CAD1.3325/USD. | |
| CAD0.7396/USD. |
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