The spot exchange rate for the Mexican peso is 12.35 MXN/CAD.If the one-year Canadian interest rate is 5.5% and the one-year Mexican interest rate is 3.75%,compute the implied one-year forward rate in CAD/MXN.
A) 0.079 CAD/MXN
B) 0.080 CAD/MXN
C) 0.082 CAD/MXN
D) 0.085 CAD/MXN
E) 0.081 CAD/MXN
Correct Answer:
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