Canadian investments with a one-year maturity can be made for 6% and Swiss one-year investments can be made for 3%.If the spot exchange rate is Sf1.6/$, which of the following one-year forward exchange rates would convince you to invest in Switzerland?
A) Sf1.55/$
B) Sf1.60/$
C) Sf1.65/$
D) Sf1.70/$
Correct Answer:
Verified
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