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QUESTION 1 Assume a risk - free asset in the U . S . is currently yielding 4 . 1 percent, a Canadian risk -

QUESTION 1
Assume a risk-free asset in the U.S. is currently yielding 4.1 percent, a Canadian risk-free asset is yielding 3.7 percent, and the current spot rate is C$1.2633. What is the approximate three-year forward rate if interest rate parity holds?
A.C$1.2684
B.C$1.2482
C.C$1.2541
D.C$1.2785
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