Assume the Spot Rate on the Canadian Dollar Is C$0

question 43

Multiple Choice

Assume the spot rate on the Canadian dollar is C$0.9872.The risk-free nominal rate in the U.S.is 5.4 percent while it is only 4.2 percent in Canada.Which one of the following four-year forward rates best establishes the approximate interest rate parity condition?

• A)C$0.9407
• B)C$0.9608
• C)C$1.0267
• D)C$1.0519
• E)C$1.0597

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Definitions:

Dopamine

A neurotransmitter involved in controlling the brain's reward and pleasure centers, as well as regulating movement and emotional responses.

Receptor Sites

Specific areas on the surface of cells designed to receive and bind with specific substances, like neurotransmitters, to initiate a cellular response.

Tardive Dyskinesia

A neurological disorder characterized by involuntary, repetitive body movements, often resulting from long-term use of certain psychiatric drugs.

Antipsychotic Medications

drugs used to treat psychiatric conditions by affecting neurotransmitter levels in the brain, reducing symptoms of psychosis.