The spot ¥/C$ exchange rate is 107.9 and the one year forward exchange rate ¥/C$ $ is 103.6.If the annual interest rate on Canadian T-bill is 5.5%,what would you expect the annual interest rate to be on Japanese T-bill?
A) 1.4%
B) 3.3%
C) 1.4%.
D) 1.29%
Correct Answer:
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