Assume that the forward rate is used to forecast the spot rate. The forward rate of the Canadian dollar contains a 6% discount. Today's spot rate of the Canadian dollar is $.80. The spot rate forecasted for one year ahead is:
A) $.860.
B) $.848.
C) $.740.
D) $.752.
E) none of the above
Correct Answer:
Verified
Q2: Assume that the U.S. interest rate is
Q3: Which of the following forecasting techniques would
Q6: Assume the following information: Q7: Which of the following forecasting techniques would Q7: If today's exchange rate reflects all relevant Q10: Which of the following forecasting techniques would Q11: Which of the following is true? Q13: When the value from the prior period Q17: According to the text, research generally supports Q63: A fundamental forecast that uses multiple values
A)Forecast errors
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