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please give the explanation thank you! Today's spot rate between Mexican peso and dollar is MXN15.1515/$. 1-year forward rate is MXN15.5151/$. Which of the following
please give the explanation thank you!
Today's spot rate between Mexican peso and dollar is MXN15.1515/$. 1-year forward rate is MXN15.5151/$. Which of the following flowing explains this forecast? 6. A) B) C) D) Mexican interest rate = 8% per annum; Canadian interest rate-5.6% per annum+' Peso annual inflation rate = 5.4%; Canadian expected inflation rate = 3% per year- Canadian dollar is trading at a forward premium of 2.4% over next year- All of the above*Step by Step Solution
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