The spot exchange rate for Canadian dollars is .97 to the U.S.dollar.The 6 months forward rate is .9698 to the U.S.dollar.The interest rate in Canada (annual) is 2.04%.What is the U.S.Interest rate?
A) 2.02%
B) 4.04%
C) 1.08%
D) .9982%
Correct Answer:
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