Calculate the Forward Exchange Rate Using the Following Information

question 91

Multiple Choice

Calculate the forward exchange rate using the following information.spot exchange rate is $1.45 for 1 Euro.The nominal interest rate in Canada is 6 percent and the nominal interest rate in Europe is 4%.

• A)1.44
• B)1.43
• C)1.45
• D)1.41
• E)1.42

---

Definitions:

Programmed Decisions

Decisions that are routine and repetitive, which can be addressed through established processes.

Company Policies

Established guidelines and rules that dictate how various aspects of business should be conducted within an organization.

Rate Alternatives

A step in decision-making processes where different options are evaluated based on selected criteria to determine the best choice.

Decision Criteria

The standards or benchmarks that guide choices in the decision-making process.