The Spot Exchange Rate for Canadian Dollar(C$) Is U

question 29

Multiple Choice

The spot exchange rate for Canadian Dollar(C$) is U.S.$0.68/C$.The six-month interest rate in U.S.is 2.5% and 3.0% in Canada.What is the six-month forward rate for Canadian Dollar?

• A)U.S.$0.6734/C$
• B)U.S.$0.6767/C$
• C)U.S.$0.6833/C$
• D)U.S.$0.6866/C$ forward rate = spot rate x

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Definitions:

Mean

The arithmetic average of a set of numbers, calculated by dividing the sum of the numbers by the count of numbers in the set.

T Score

A type of standardized score that indicates how many standard deviations an element is from the mean.

Standard Deviation

A measure of the dispersion or spread in a set of data; it quantifies how much the individual data points differ from the mean value.

Mean

The average of a set of numbers, calculated by adding them together and dividing by the count of numbers.