Suppose the Interest Rate in Canada Is 4% While It

question 94

Multiple Choice

Suppose the interest rate in Canada is 4% while it is 3% in the U.S. The indirect spot rate is C$1.02. What is the indirect 1-year forward rate?

• A) C$1.0299
• B) C$1.0608
• C) C$1.0200
• D)C$1.0302

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Definitions:

Clotting

is the process by which blood changes from a liquid to a gel, forming a clot, and is crucial in preventing excessive bleeding when the vascular system is injured.

Plasma Protein

Proteins found in blood plasma, including albumin and globulins, which play roles in clotting, immunity, and transport.

Anemia

A condition in which there is a deficiency of red cells or of hemoglobin in the blood, resulting in pallor and weariness.

Polycythemia Vera

A rare blood disorder characterized by the overproduction of red blood cells, causing blood thickening.