Assume a risk-free asset in the U.S.is currently yielding 2.53 percent while a Canadian risk-free asset is yielding 2.62 percent.The current spot rate is C$1.012.What is the approximate 3-year forward rate if interest rate parity holds?
A) C$1.0061
B) C$1.0023
C) C$1.0147
D) C$.9855
E) C$.9939
Correct Answer:
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