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Assume the following financial information between Canada and Germany. S (/$) F 6 ((/$) $ rf rf 0.5599 0.5569 1.9% 1.47% Note: S = spot
Assume the following financial information between Canada and Germany.
S (/$) | F6 ((/$) | $rf | rf |
0.5599 | 0.5569 | 1.9% | 1.47% |
Note:
S = spot exchange rate,
F6 = 6-month forward exchange rate
rf = 6-month T-bill rate each.
Which country is more profitable to invest in?
1. Canada
2. Germany
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