The spot exchange rate for the Mexican peso is 0.093 CAD/MXN.If the one-year Canadian interest rate is 3.5% and the one-year Mexican interest rate is 9.0%,compute the implied one-year forward rate in CAD/MXN.
A) 0.101 CAD/MXN
B) 0.083 CAD/MXN
C) 0.096 CAD/MXN
D) 0.098 CAD/MXN
E) 0.088 CAD/MXN
Correct Answer:
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