The spot exchange rate for Canadian dollars is .1.007 to the U.S.dollar.The 6 months forward rate is 1.0068 to the U.S.dollar.The interest rate in Canada (annual) is 1.02%.What is the U.S.interest rate?
A) 1.00%
B) 1.04%
C) 1.08%
D) .9800%
Correct Answer:
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