The six-month interest rate in Australia is 0.6%.The spot exchange rate for Australian dollars is 1.4063 to the US dollar.The six months forward rate is 1.4259 to the US dollar.These prices indicate that the six-month risk-free rate in the United States is [blank].
A) 6.00%
B) 3.02%
C) 3.42%
D) 2.00%
Correct Answer:
Verified
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