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The one-year interest rate is 3.73% in the U.S. and 2.12% in Canada. The current exchange rate of U.S. dollar (USD) to Canadian dollar (CAD)

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The one-year interest rate is 3.73% in the U.S. and 2.12% in Canada. The current exchange rate of U.S. dollar (USD) to Canadian dollar (CAD) is USD 1 = CAD 1.37. What is the expected exchange rate after one year that satisfies the interest parity condition? Select one: . 1.3916 . 0.8270 C 1.2306 OD. 1.3487

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