If the spot rate for Marsian Spotlets (MRS) is 4 per U.S.Dollar (USD) and the risk-free rates of return are 10% and 2%,respectively for the Marsian and U.S.economy,then what should the 1-year forward rate be for MRS/USD?
A) 4.3137
B) 4.0000
C) 0.2318
D) none of the above
Correct Answer:
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