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Question
The 1 year interest rate in the U.S. is 2%. The spot exchange rate for Canadian dollars .97 to the U.S.dollar. The 6 months forward rate is .9698 to the U.S. dollar. These prices indicate that interest rates in Canada, on an annualized basis, are about:A) .08% lower.
B) .08% higher.
C) .04% higher.
D) .8% lower.
Answer
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Related questions
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