Multiple Choice
Assume that the forward rate is used to forecast the spot rate. The forward rate of the Canadian dollar contains a 6% discount. Today's spot rate of the Canadian dollar is £0.61. The spot rate forecasted for one year ahead is:
A) £0.5734.
B) £0.4032.
C) £0.5467.
D) £0.4982.
E) none of the above.
Correct Answer:
Verified
Correct Answer:
Verified
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