A three-month forward exchange rate in CAD/USD is listed by a dealer at 1.0123. The dealer also

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A three-month forward exchange rate in CAD/USD is listed by a dealer at 1.0123.

The dealer also quotes three-month forward points as a percentage at 6.8 percent. The CAD/USD spot rate is closest to:

A. 0.9478.

B. 1.0550.

C. 1.0862.

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2024 CFA Program Curriculum Level I Volume 1

ISBN: 9781953337672

1st Edition

Authors: CFA Institute

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Question Posted: Feb 01, 2024 08:02 AM

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A three-month forward exchange rate in CAD/USD is listed by a dealer at 1.0123. The dealer also

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A is correct Given the forward rate and forward poi...View the full answer

2024 CFA Program Curriculum Level I Volume 1

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