Assume a Risk-Free Asset in the U

question 29

Multiple Choice

Assume a risk-free asset in the U.S.is currently yielding 2.7 percent while a Canadian risk-free asset is yielding 2.8 percent and the current spot rate is Can$1.2849 = $1.What is the approximate 6-month forward rate if interest rate parity holds?

• A)Can$1.2855
• B)Can$1.2838
• C)Can$1.2843
• D)Can$1.2862
• E)Can$1.2836

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Laws in the United States that limit certain behaviors, actions, or freedoms.

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A narcotic obtained from the poppy plant used historically and presently for its analgesic and narcotic properties, as well as being a subject of international trade and addiction.

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