Suppose that the US interest rate is 10% and the Canadian interest rate is 10%. If the
Fantastic news! We've Found the answer you've been seeking!
Question:
Suppose that the US interest rate is 10% and the Canadian interest rate is 10%. If the US interest rate rises to 12%, what happens according to covered interest rate parity? The forward rate, quoted as US $ per Canadian $, will (rise, fall) and the spot rate will (rise, fall).
Related Book For
Posted Date: