Calculate the Forward Exchange Rate Using the Following Information

question 97

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

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