Question
Suppose the exchange rate for the Canadian dollar (USD/CAD) is quoted as 1.34 in the spot market and 1.30 in the 90-day forward market. Does
Suppose the exchange rate for the Canadian dollar (USD/CAD) is quoted as 1.34 in the spot market and 1.30 in the 90-day forward market.
Does the financial market expect the Canadian dollar to strengthen or weaken relative to the dollar?
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Commodity Option Pricing A Practitioner's Guide
Authors: Iain J. Clark
1st Edition
1119944511, 978-1119944515
