If the spot rate for Marsian Spotlets (MRS) is 4 per U.S.Dollar (USD) and the one-year risk-free rate of return is 30%,for the Marsian economy,then what should the risk free rate for the U.S.economy if the 1-year forward rate be for MRS/USD is 5?
A) .04
B) .038
C) .625
D) none of the above
Correct Answer:
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