The 1-year forward rate for Hong Kong dollars HK$7.27 per $1. The rate on a risk-free Hong Kong asset is 5%. The spot rate is HK$7.98 per $1. Approximately what rate can you earn by investing in the Canadian risk-free security for one year?

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The Answer of The 1-year forward rate for Hong Kong dollars HK$7.27 per $1. The rate on a risk-free Hong Kong asset is 5%. The spot rate is HK$7.98 per $1. Approximately what rate can you earn by investing in the Canadian risk-free security for one year?

The 1-Year Forward Rate for Hong Kong Dollars HK$7