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Posted on May 18, 2024

If the interest rate in Brazil is 8 % p . a . and in Canada it is 2 % p . a . ,

If the interest rate in Brazil is

8 %

.

.

and in Canada it is

2 %

.

.,

then in the forward market the BRL should trade at a

(

choose: premium

/

discount

)

against the CAD of approximately

(

fill the blank

) %

over a

6

month horizon.

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