The spot exchange rate for the Canadian dollar is CAD1.02 = USD1.The 6-month interest rate in the United States is 2.5% and 3.0% in Canada.What is the 6-month forward rate for the Canadian dollar?
A) CAD1.005= USD1
B) CAD1.025 = USD1
C) CAD0.985= USD1
D) CAD1.02= USD1
Correct Answer:
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