The Spot Rate Is $1 = C$1

question 30

True/False

The spot rate is $1 = C$1.02.The 3-month forward rate is $1 = C$1.03.The Canadian dollar is selling at a forward premium.

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Definitions:

Hostile Takeover

An acquisition attempt by a company or individual against the target company's wishes.

Cash Bidding Price

The price offered in cash during an auction or bidding process for an asset or item.

Market Price

The market price at which you can currently buy or sell an asset or service.

Interest Tax Savings

The reduction in tax payments resulting from the deduction of interest payments on debt from taxable income.