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| Teaching Since: | May 2017 |
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| Questions Answered: | 20103 |
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MBA, PHD
Phoniex
Jul-2007 - Jun-2012
Corportae Manager
ChevronTexaco Corporation
Feb-2009 - Nov-2016
Question description
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1-The current spot rate is C$1.377 and the one-year forward rate is C$1.316. The nominal risk-free rate in Canada is 4 percent while it is 8 percent in the U.S. Using covered interest arbitrage you can earn an extra _____ profit over that which you would earn if you invested $1 in the U.S. |
2-Currently, $1 will buy C$1.43 while $1.26 will buy €1. What is the exchange rate between the Canadian dollar and the euro?
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