Question: A hedger will be indifferent between hedging in the money markets and the forward markets, assuming that S= 1.4000 Cad/usd and Rcad = 10% and

A hedger will be indifferent between hedging in the money markets and the forward markets, assuming that S= 1.4000 Cad/usd and Rcad = 10% and Rusd= 5% if the forward rate, measured in CAD/USD is?

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