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Find the Forward Rate of Foreign Currency Y If the Spot

Question 40

Multiple Choice

Find the forward rate of foreign currency Y if the spot rate is $4.50,the domestic interest rate is 6 percent,the foreign interest rate is 7 percent,and the forward contract is for nine months.


A) $4.458
B) $5.104
C) $4.468
D) $4.532
E) none of the above

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