Interest Rate Parity Assume the spot rate between the U.S.dollar and the Taiwan dollar is $1 = TWD32.456.If the interest rate in the United States is 4 percent and in Taiwan is 3 percent,then what should be the one-month forward exchange rate?
A) $0.0308
B) $0.0311
C) $1.0097
D) $1.0008
Correct Answer:
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