Assume that Canadian (domestic) interest rate is 6%, EU (foreoign) interest rate is 3%, and the nominal exchange rate is $0.67 Canadian per 1 euro. According to the covered interest rate parity, what...


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Assume that Canadian (domestic) interest rate is 6%, EU (foreoign) interest rate is 3%,<br>and the nominal exchange rate is $0.67 Canadian per 1 euro. According to the<br>covered interest rate parity, what should be the corresponding forward price of euro in<br>Canadian dollars?<br>O A. $1.54<br>O B. $1.46<br>O C. $0.69<br>O D. $0.65<br>

Extracted text: Assume that Canadian (domestic) interest rate is 6%, EU (foreoign) interest rate is 3%, and the nominal exchange rate is $0.67 Canadian per 1 euro. According to the covered interest rate parity, what should be the corresponding forward price of euro in Canadian dollars? O A. $1.54 O B. $1.46 O C. $0.69 O D. $0.65

Jun 10, 2022
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