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Suppose mid-market USD/CAD spot exchange rate is 1.2500 CAD and one year forward rate is 1.2380 CAD. Also, the risk-free interest rate is 4% for

Suppose mid-market USD/CAD spot exchange rate is 1.2500 CAD and one year forward rate is 1.2380 CAD. Also, the risk-free interest rate is 4% for USD and 3% for CAD. Which of the following value confirms that interest rate parity exists (Ratio of Forward to Spot)?

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