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Question 1 (4 points) Canadian dollar(C$) denominated continuously compounded annual interest rate is 2.5% and U.S. dollar($) denominated continuously compounded annual interest rate is 1%.

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Question 1 (4 points) Canadian dollar(C$) denominated continuously compounded annual interest rate is 2.5% and U.S. dollar($) denominated continuously compounded annual interest rate is 1%. The current ($/C$) exchange rate is $0.76. What is the 2-year forward rate? $0.78 $0.74 $0.75 $0.77

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