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Suppose the annual interest rate is 30% in Brazil and 7% in Canada, the 3-month forward rate is currenctly 7.08 reais per Canadian dollar,

Suppose the annual interest rate is 30% in Brazil and 7% in Canada, the 3-month forward rate is currenctly 7.08 reais per Canadian dollar, what should be the spot rate under the Interest Rate Parity (IRP)? a. 6.7013 reais per Canadian dollar b. 7.4801 reais per Canadian dollar c. 8.6019 reais per Canadian dollar d. 5.8274 reais per Canadian dollar e. Not enough information

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