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The nominal annual risk-free rate is 2.3% in the U.S. and 3.9% in Brazil. What should be the exact one-year forward premium or discount according
The nominal annual risk-free rate is 2.3% in the U.S. and 3.9% in Brazil. What should be the exact one-year forward premium or discount according to interest rate parity?
| A. | 0.01540 | |
| B. | -0.01540 | |
| C. | 0.01564 | |
| D. | -0.01564 |
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