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Suppose that the Euro-denominated interest rate is 1.5%, the dollar- denominated interest rate is 1%, and the current exchange rate is 1.42 dollars per Euro.

Suppose that the Euro-denominated interest rate is 1.5%, the dollar- denominated interest rate is 1%, and the current exchange rate is 1.42 dollars per Euro. What is the 6-month forward exchange rate in Vancouver (i.e., C$ per 1 Euros)? What is the 6-month forward exchange rate in Milan (i.e., Euros per 1 C$)? [Assume that interest rates are annualized and continuously compounded.]

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