Assume the spot rate on the Canadian dollar is C$1.1847. The risk-free nominal rate in the U.S. is 5 percent while it is

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answerhappygod
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Assume the spot rate on the Canadian dollar is C$1.1847. The risk-free nominal rate in the U.S. is 5 percent while it is

Post by answerhappygod »

Assume the spot rate on the Canadian dollar is C$1.1847. The
risk-free nominal rate in the U.S. is 5 percent while it is only 4
percent in Canada. What one-year forward rate will create interest
rate parity?
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