Suppose in the spot market 1 U.S. dollar equals 1.32 Canadian dollars. 6-month Canadian securities have an annualized return of 7.60% (and thus a 6-month periodic return of 3.80%). 6-month U.S. securities have an annualized return of 8.00% and a periodic return of 4.00%. If interest rate parity holds, what is the U.S. dollar-Canadian dollar exchange rate in the 180-day forward market? In other words, how many Canadian dollars are required to purchase one U.S. dollar in the 180-day forward market? Do not round the intermediate calculations and round the final answer to four decimal places.

a. 1.4250 C$ b. 1.3175 C$ c. 1.3225 C$ d. 1.2228 C$ e. 0.7590 C$