Suppose U.S.interest rates are presently 4.54% on one-year U.S.T-bills.Suppose that the one-year forward exchange rate is quoted at US$1 = C$1.0698 and that the interest rate on one-year T-bills in Canada is 4.325%.What should the spot exchange rate be?

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The Answer of Suppose U.S.interest rates are presently 4.54% on one-year U.S.T-bills.Suppose that the one-year forward exchange rate is quoted at US$1 = C$1.0698 and that the interest rate on one-year T-bills in Canada is 4.325%.What should the spot exchange rate be?

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