Currently the Brazilian Real Is Trading at R/$ 1

question 22

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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