Multiple Choice
The yield on a 1-year bill in the U.K.is 7%, and the present exchange rate is 1 pound = Cad $1.65.If you expect the exchange rate to be 1 pound = Cad $1.45 a year from now, the return a Canadian investor can expect to earn by investing in U.K.bills is
A) -6.7%.
B) 3.2%.
C) 8%.
D) -5.97%.
Correct Answer:
Verified
Correct Answer:
Verified
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