Multiple Choice
Assume that the forward rate is used to forecast the spot rate. The forward rate of the Canadian dollar contains a 6 percent discount. Today's spot rate of the Canadian dollar is $.80. The spot rate forecasted for one year ahead is:
A) $.860.
B) $.848.
C) $.740.
D) $.752.
E) None of these are correct.
Correct Answer:
Verified
Correct Answer:
Verified
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