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Suppose that a bank is quoting the following rates in American terms) on the Canadian dollar (CAD): Spot 0.7882 1-month forward 0.7880 6-month forward 0.7877

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Suppose that a bank is quoting the following rates in American terms) on the Canadian dollar (CAD): Spot 0.7882 1-month forward 0.7880 6-month forward 0.7877 Your firm decides to enter a 6-month short forward position on CAD500,000. Therefore, your firm will be obligated to CAD500,000 at a rate of ____ in 6 months

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