Question
A risk-free asset in the U.S. is currently yielding 3% while a Canadian risk-free asset is yielding 2%. The current spot rate is C$0.72 is
A risk-free asset in the U.S. is currently yielding 3% while a Canadian risk-free asset is yielding 2%. The current spot rate is C$0.72 is equal to $1.0. What is the approximate two-year forward rate if the interest rate parity holds?
| A. | C$0.7057 | |
| B. | C$0.7128 | |
| C. | C$0.7136 | |
| D. | C$0.7189 | |
| E. | None |
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Problems In Portfolio Theory And The Fundamentals Of Financial Decision Making
Authors: Leonard C Maclean, William T Ziemba
1st Edition
9814749931, 978-9814749930
