The French Euro Is Currently Worth $0

question 23

Multiple Choice

The French Euro is currently worth $0.24 and it's selling in the one-year forward market at a 10% premium relative to the Canadian Dollar.Approximately what rate would you expect to pay for a one-year loan in France if the rate would be 10% in Canada?

• A)10.00%
• B)11.62%
• C)14.55%
• D)20.00%

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Definitions:

Net Weight

The weight of a product without any packaging or container, essentially the weight of the goods alone.

Standard Deviation

A measure of the amount of variation or dispersion of a set of values, indicating how much the individual data points differ from the mean of the data set.

Significance Level

The threshold used in statistics to determine the probability of rejecting a null hypothesis when it is true.

Sample Mean

The average of a set of observations or data points, calculated by summing them all up and dividing by the number of observations.