If the annualized interest rates in the U.S. and Hong Kong are 9% and 13%, respectively, and the spot value of the Hong Kong dollar is HK$9.0171, then at what 180-day forward rate will interest rate parity hold?
A) HK$9.3458
B) HK$8.6957
C) HK$9.1897
D) HK$8.8496
Correct Answer:
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