Question: Suppose that the current one - year risk - free interest rate in the U . S . is 2 % and the current one
Suppose that the current oneyear riskfree interest rate in the US is and the current oneyear riskfree interest rate in Canada is You also know that the oneyear forward Canadian dollareuro exchange rate is one Canadian dollar equals euros and the oneyear forward US dollareuro exchange rate is one US dollar equals euros According to covered interest rate parity, what is the current Canadian dollarUS dollar spot rate value of one Canadian dollar in US dollars
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