Multiple Choice
An investor invests in a Mexican treasury at 9% for one year. The equivalent USA investment yields 5%. If the spot exchange rate is 13.000 pesos per USD, what is the expected forward exchange rate in pesos per USD?
A) 13.691
B) 13.495
C) 13.150
D) 13.000
Correct Answer:
Verified
Correct Answer:
Verified
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