Question
Assume the following market quotes today Spot rate = CAD 1.3336 per USD Forward 60 day = CAD 1.3348 per USD 60-day interest rate in
Assume the following market quotes today
Spot rate = CAD 1.3336 per USD
Forward 60 day = CAD 1.3348 per USD
60-day interest rate in Canada (nominal rate) = 2.3%
60-day interest rate in the US (nominal rate) = 1.75%
Is the Canadian dollar (CAD) selling at a forward discount or at a forward premium to the US dollar (USD)? No calculations needed.
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Foundations Of Financial Management
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen
18th Edition
126409762X, 9781264097623
