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Please answer the following: The Spot Rate (SO) for Canadian dollars (CAD) for US dollars (USD) is CAD 1.32 to USD 1. The riskless rate
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The Spot Rate (SO) for Canadian dollars (CAD) for US dollars (USD) is CAD 1.32 to USD 1. The riskless rate of interest in the US for 3 months (RUS) is 0.2%. The riskness rate for Canada (Foreign Country) is 1%. According to the Covered Interest Rate Parity relationship, what should be the 3 month Forward rate (F) of CAD for USD? (Note: Your answer should be the number of CAD for USD 1 in the 3-month Forward rate for CAD for USD.) YourStep by Step Solution
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