The Spot Exchange Rate for Indian Rupees Is 42 INR/CAD

question 97

Multiple Choice

The spot exchange rate for Indian rupees is 42 INR/CAD.The one-year forward exchange rate is 43 INR/CAD and the one-year Canadian interest rate is 4%.What is the implied one-year interest rate in India?

• A)5.56%
• B)6.48%
• C)7.25%
• D)8.91%
• E)9.04%

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