Find the Forward Rate of Foreign Currency Y If the Spot

question 40

Multiple Choice

Find the forward rate of foreign currency Y if the spot rate is $4.50,the domestic interest rate is 6 percent,the foreign interest rate is 7 percent,and the forward contract is for nine months.

• A)$4.458
• B)$5.104
• C)$4.468
• D)$4.532
• E)none of the above

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Definitions:

Overt Behavior

Overt behavior refers to observable actions and responses of an individual that can be seen and measured directly by others.

Retained

Kept in possession or memory; not lost or forgotten.

Self-reinforcement

The process by which individuals reward themselves for reaching certain goals or exhibiting desirable behaviors, thus encouraging repeated action.

Personal Standards

Refers to the individual benchmarks or expectations one sets for themselves in various aspects of their lives, influencing behavior and self-assessment.