Multiple Choice
Montreal First Bank is selling forward contracts on the USD/CAD exchange market.What exchange rate would they require for a three-month forward rate,if the spot rate is C$ 1.0200/USD and the interest rates are 3% and 2.5% in Canada and the US respectively?
A) C$1.0249
B) C$1.0213
C) C$1.0187
D) C$1.0200
Correct Answer:
Verified
Correct Answer:
Verified
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