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Use the information below to answer the following questions. Canada dollar 6-months forward Japan Yen 6-months forward U.K. Pound 6-months forward Currency per U.S. $
Use the information below to answer the following questions. Canada dollar 6-months forward Japan Yen 6-months forward U.K. Pound 6-months forward Currency per U.S. $ 1.2375 1.2358 100.3100 100.0700 0.6794 0.6779 Suppose interest rate parity holds, and the current risk-free rate in the United States is 4 percent per six months. Requirement 1: What must the six-month risk-free rate be in Canada Requirement 2: 2.74 3.76 What must the six-month risk-free rate be in Japan? 3.78 Requirement 3 3.86 What must the six-month risk-free rate be in Great Britain
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