Assume the Current Spot Rate Is Can$1

question 69

Multiple Choice

Assume the current spot rate is Can$1.2803 and the one-year forward rate is Can$1.2745.Also assume the nominal risk-free rate in Canada is 4.8 percent while it is 4.2 percent in the U.S.Using covered interest arbitrage,you can earn a profit of ________ for every $1 invested over the next year.

• A)$.0163
• B)$.0108
• C)−$.0040
• D)−$.0088
• E)−$.0840

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Definitions:

Phenotypic Trait

An observable and measurable characteristic of an organism, which can result from its genetic makeup and environmental influences.

DNA

DNA, or deoxyribonucleic acid, is a molecule that contains the instructions an organism needs to develop, live, and reproduce.

Population Differences

Variations in genetic makeup, traits, or behaviors among different groups within a species, often due to environmental factors or genetic drift.

Glyphosate

A broad-spectrum systemic herbicide and crop desiccant, known for its use in agriculture to kill weeds, especially those resistant to other herbicides.