The one-year us dollar interest rate is 275 and one-year

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The one-year U.S. dollar interest rate is 2.75% and one-year Canadian dollar interest rate is 4.25%. The current USD/CAD spot exchange rate is 1.0221-1.0225. Calculate the one-year USD/CAD forward rate. Assume annual compounding.

A. 1.0076

B. 1.0074

C. 1.0075

D. 1.03722

Reference no: EM13568808

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