Question
Suppose one year interest rates in Canada and the US are 6% and 8%, respectively, and the spot value of the Canadian dollar is .80
Suppose one year interest rates in Canada and the US are 6% and 8%, respectively, and the spot value of the Canadian dollar is .80 USD. What should be the one year forward rate according to IRP? (Assume the US is the home country and round intermediate steps to four decimals.)
| $.7849/C$ | ||
|
$.8151/C$ | ||
| $.7852/C$ | ||
| none of the above |
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Of Synthetic Finance Three Essays Of Speculative Materialism
Authors: Benjamin Lozano
1st Edition
1138790842, 978-1138790841
