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Montreal First Bank is selling forward contracts on the USD/CAD exchange rate. What exchange rate would they require for a three-month forward rate. If the

Montreal First Bank is selling forward contracts on the USD/CAD exchange rate. What exchange rate would they require for a three-month forward rate.

If the spot rate is C$ 1.0200/USD and the interest rates are 3% and 2.5% in Canada and the US respectively?

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