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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Definitions:

Dependent Variable

In an experiment, it is the variable being tested and measured, and it is expected to change as a result of manipulations to the independent variable(s).

Interpersonal Skills

The abilities used by a person to interact effectively with others, such as communication, empathy, and conflict resolution.

Sleep Deprivation

Sleep deprivation is a condition resulting from not getting enough sleep, which can affect mood, performance, and overall health.

Statistically Significant

A term denoting that the results observed in a study are unlikely to have occurred by chance, indicating a meaningful difference or relationship.