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Assume the following financial information between Canada and the United States. S (USD/CAD) F 6 ((USD/CAD) CAD rf USD rf 0.8143 0.8101 1.9% 1.31% Note:
Assume the following financial information between Canada and the United States.
S (USD/CAD) | F6 ((USD/CAD) | CADrf | USDrf |
0.8143 | 0.8101 | 1.9% | 1.31% |
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. The United States
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