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Assume: (1) the Canada annual interest rate = 7%; (2) the New Zealand annual interest rate = 2.5%; and (3) the 180-day forward rate for

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Assume: (1) the Canada annual interest rate = 7%; (2) the New Zealand annual interest rate = 2.5%; and (3) the 180-day forward rate for the New Zealand dollar = C$0.8764. At what current spot rate will interest rate parity hold? A) NZ$ 1.17146/C$ B) None of them C) NZ$ 1.1664/C$ D) NZ$ 0.8395/C$ E) NZ$ 0.8573/C$

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