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

question 111

Multiple Choice

The spot exchange rate for the Canadian dollar (C$) is U.S.$0.980/C$. The 6-month interest rate in the United States is 2.5% and 3.0% in Canada. What is the 6-month forward rate for the Canadian dollar?

• A) US$0.995/C$
• B) US$0.975/C$
• C) US$0.985/C$
• D)US$0.990/C$

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