Currently the Brazilian Real Is Trading at R/$ 1

question 6

Multiple Choice

Currently the Brazilian Real is trading at R/$ 1.7531; if the current anticipated inflations are 4% (U.S) and 7.3% (Brazil) over the next year what is the fair one-year forward price? (R/$)

• A) 1.686
• B) 1.699
• C) 1.809
• D) 1.634

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Definitions:

Malinke of Mali

An ethnic group predominantly found in Mali, known for their historical and cultural significance, including the founding of the ancient Mali Empire.

Twelfth Century

The period in history from the year 1100 to 1199, marking the High Middle Ages in Europe.

Kingdom of Ghana

An ancient West African empire, known for its wealth in gold and trade networks, existing from around the 6th to 13th centuries AD.

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