The interest rate on a 1-year Canadian security is 12% current exchange rate is C$ =...

The interest rate on a 1-year Canadian security is	12%
current exchange rate is C$ = US	0.8
1-year forward rate is C$ = US	0.82

The return (denominated in U.S. $) that a U.S. investor can earn by investing in the Canadian security is

		12.00%
		13.24%
		14.18%
		14.80%

Expert Solution

jeff jeffy answered 11 months ago

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