If Annualized Interest Rates on January 1,1985 in the U

question 1

Multiple Choice

If annualized interest rates on January 1,1985 in the U.S.and France were 9% and 13%,respectively,and the spot value of the franc was $.1109,then at what 180-day forward rate would interest rate parity hold?

• A)$.1070
• B)$.1150
• C)$.1088
• D)$.1130

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