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Question 4: (Maximum 1.5 pages) You are a market-maker in the CAD-USD forward market. Today is September 20, 2021, one U.S. dollar buys CAD 1.2764
Question 4: (Maximum 1.5 pages) You are a market-maker in the CAD-USD forward market. Today is September 20, 2021, one U.S. dollar buys CAD 1.2764 in the spot market, and the term structure of moneymarket interest rates in the two jurisdictions are provided below. These rates are expressed in Term Ending date U.S rate Canada Rate Ox3 2021-12-20 0.00447 0.00165 Ox6 2022-03-22 0.00462 0.00188 Ox9 2022-06-21 0.00497 0.00228 Ox12 2022-09-20 0.00553 0.0028 0x15 2023-12-20 0,00619 0.00335 Ox18 2023-03-23 0.00691 0.00596 0x21 2023-06-123 0.00779 0.00809 Ox24 2023-09-22 0.00853 0.00973 decimals 1. (a) AnanalystfromyourEconomicStrategygroupwantsyoutoforecastthespotUSD /CAD exchange rate on June 21, 2022. Please, address her question briefly
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