Multiple Choice
Montreal First Bank is selling forward contracts on the CAD/USD market.What exchange rate will they require for a three-month forward rate, if the spot rate is C$0.9800/USD, and the interest rates are 3% and 2.5% in Canada and the US respectively?
A) C$0.9752
B) C$0.9788
C) C$0.9812
D) C$0.9800
Correct Answer:
Verified
Correct Answer:
Verified
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