An Exchange Rate Is 0

question 18

Multiple Choice

An exchange rate is 0.7000 and the six-month domestic and foreign risk-free interest rates are 5% and 7% (both expressed with continuous compounding) .What is the six-month forward rate?

• A) 0.7070
• B) 0.7177
• C) 0.7249
• D) 0.6930

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Definitions:

Moss

A small, flowerless green plant that typically grows in dense green clumps or mats, often in damp or shady locations.

Lichen

Symbiotic organisms comprised of a fungus and a photosynthetic partner (usually an alga or cyanobacteria) living together in a mutually beneficial relationship.

Carbon Cycle

The natural process of carbon being exchanged among the biosphere, pedosphere, geosphere, hydrosphere, and atmosphere of Earth, essential for life.

Phosphorus Cycle

The cycle that explains how phosphorus circulates through the Earth's crust, water bodies, and ecosystems.