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Assume a risk-free asset in the U.S. is currently yielding 2.2 percent while a Canadian risk-free asset is yielding 2.5 percent. The current spot rate

Assume a risk-free asset in the U.S. is currently yielding 2.2 percent while a Canadian risk-free asset is yielding 2.5 percent. The current spot rate is CAD1.3082. What is the approximate 2-year forward rate if interest rate parity holds?

		CAD1.3193
		CAD1.3072
		CAD1.3015
		CAD1.3161
		CAD1.3125

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