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Assume the Canadian Dollar/U.S. Dollar Spot rate is C$1.3300/$ and the 3-month forward rate is quoted as C$1.3512/$. Hence, the 3-month U.S. dollar is selling

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Assume the Canadian Dollar/U.S. Dollar Spot rate is C$1.3300/$ and the 3-month forward rate is quoted as C$1.3512/$. Hence, the 3-month U.S. dollar is selling at a forward of approximately per annum None of the answers is correct premium; 6.38% premium; 1.59% discount: 1.57% discount: 6.38%

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