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Assume that Canadian (domestic) interest rate is 6%, EU (foreign) interest rate is 3%, and the nominal exchange rate is $0.67 Canadian per 1
Assume that Canadian (domestic) interest rate is 6%, EU (foreign) interest rate is 3%, and the nominal exchange rate is $0.67 Canadian per 1 euro. According to the covered interest rate parity, what should be the corresponding forward price of euro in Canadian dollars? OA. $1.46 OB. $1.54 OC. $0.69 OD. $0.65
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