Assume the Spot Rate Between the U

question 81

Multiple Choice

Assume the spot rate between the U.S. dollar and the Taiwan dollar is $1 = TWD32.456. If the interest rate in the United States is 4 percent and in Taiwan is 3 percent, then what should be the one-month forward exchange rate?

• A) $0.0308
• B) $0.0311
• C) $1.0097
• D) $1.0008

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