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?

Question

Quizplus · Accepted Answer

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