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If the spot rate C$/$ is 1.4050 and the US interest rate is 5% and Canadian interest rate is 6%, then one-year equilibrium forward rate

If the spot rate C$/$ is 1.4050 and the US interest rate is 5% and Canadian interest rate is 6%, then one-year equilibrium forward rate (C$/$) is a) 1.4184 b) 1.3917 c) 1.4250 d) 1.3858 Answer: a

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